fe 


si* 


mi^. 


THF. 

Weldon  N.  Edwards 

and 

Marmaduke  J.Hawkins 
Libraries 


I'm.  I.M...-.!    \.y 

TRINITY  COLLEGE  LIBRARY 

Mav.   19J1 


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PIE  I^  O  PI  T 


OF     THE 


SECRETARY  OF  THE  TREASURY. 


Treasuhy  Department,  C.  S.  A.,  ) 
Richmond,  January  U>j  JS6I3.      J 
Hon.  T.  S.  BococK, 

Speaker  House  of  Representatives^  C.  S.  A.  ; 

Sir  :  I  have  the  honor  to  submit  the  following  repojrlf  p^  tha  qpn^l- 
tion  of  this  Department : 

The  statements  for  the  last  year  were  made  up  to  tho  18th  Feb- 
ruary. 18G2,  the  termination  of  the  Provisional  Government.  From 
the  commencement  of  the  Permanent  Government  to  the  31st  Decem- 
ber, 1S62,  the  receipts  and  expenditures  were  as  follows: 

RECEIPTS. 

Patent  fund,  $13,920  00 

Customs,  6GS,566  00 

Miscellaneous,  2,291,812  00 

Re-payment  of  Disbursing  officers,  3,839,268  00 

Interest  on  loans,  26,583  00 

Call  loan  certificates,  59,742,796  00- 

One  hundred  million  loan,  41,398,286  00 

Treasury  notes,  215,551,885  00 

Interest  bearing  notes,  113,740,000  00 

War  tax,  16.664,513  00 

Loan  28th  February,  1861,  1,375,276  00 

Coin  received  from  Bank  of  Louisiana,  2,539,799  00 


$457,855,704  00 


EXPENDITUREg. 


War  Department,  §341,011,754  00 

Navy  Department,  -  20.559,283  00 

C  ivil,  miscellaneous,  foreign  intercourse  and  customs,     13,673,376  00 


5'/6  V8 


PIHI.IC    DEBT. 

Interest     on     public    debt, 

(lonnO,  $5,892,989 

Pajii  ( til  of  treasury   notc% 

•ct    '.Mh     March,     I8CI  — 

rniiiij.nL  $545,000 

Inicrcfet,*  '        20.860 

506,701 

Redemption  of  6  per  rent,  ccrtificatea,       1 1, 5 10, -100 
Red< ;      ■        "f  treasury  notes  called  in 

fo:  .ition   «nd  rc-imlturgcmcnt 

of  I'liiicipal,    under  act  of   May    IG, 

Ihri.  2.3,751.172        11,727.322  00 


$110,971,735  00 


Add  lalanec  againKt  the  Treasury   on 

IHth  February,  1862,  20,43!  .572  00 


$443,411,307  no 


Amount  of  receipts,  §457,855.704  00 

l)educt  amotT- '     '■  '  rpenJiturcs,  443,41 1,3(»7   00 


V.tJanic,  $14.444,397  00 

T:                               ^(s  in  part  of  tlie  min  on    hand,    received    from 
Bail  I.                                iid  the  remainder  in  inttrest-bfarins;  tnayiirtj  notrs. 

The  approprintioMs  mn<lc  by  Congress   and  not  yet  drawn  from  the 
trcanury  ure  a?  follows: 

Civil  and  miscellaneous,  .                         $10,925,04.0   00 

Wur  Department,  57,86o..s7y  00 

CuhtJiniH,  390.012  00 

Navy  l»eparUncnt,  12,092,373  00 


Amount,  $81,879,913  00 

The  eiitimatea  for  the  support  of  the  Government  to  first  July,  the 
end  of  the  ficcal  year,  arc  us  follows: 

Legihlative,  $231,001)  00 

Executive  (halary  of  President,  &c.,)  13.471  00 

Treasury  Department,  29,929,097  00 

"War                    •«      •  242,977,(107  «I0 

Navy                   '•  10,948,871)  00 

Slate                  •«  15  >,253  00 

Department  of  Justice,  172,»i32  00 

To-!            '  •  partnu-nt,  ♦               0(l,I2.'3  00 

.Mi^.  '               ws,  10,(1(10  00 


$290,493,713  00 


V7 


In  order  to  ascertain  tlie  amount  to  be  raised  by  Congress,  wc  must 
add :  ,  •     ' 

1.  The  estimates,  $290,493,713 

2.  Undrawn  appropriations,  81,879,913 

'■ .$372,373,626  00 

And  deduct  tbc  balance  in  the  treasury  of,  14,444,397  OU 


Leaving  amount  to  be  raised,  $357,929,229  00 

The  debt  of  the  Government  at  tlie  same  date  was  as  follows: 

BONDS  AND  STOCK. 

Under  act  of  February  28,  1861,       $14,987,000 
M;vy  16,  "  6,414,300 

August  19,        "  67,585,100 

Deposite  certificates  under 
act  of  Dec.  24,  1861  — 
Issued,  $69,005,370 

Redeemed,  12,516,400  ^ 

56,4.^8,970 

$145,475,370  00 

TRKASUUy  NOTES, 

3.65  notes,  $993,000 

2  years,  notes,  10,919,025 

General  currency,  /     272,022,467 
7.31)  notes,  120,480,000 

$1  and  $2  notes,  6,216,200     410,^29,692  00 


$556,105,062  00 
In  the  above  statement  is  contained  a  large  amount  of  bonds  and 
interest-bearing  notes,  which  are  on  hand  in  the  various  depositories 
not  yet  issued.  It  is  important  to  bear  this  in  mind  in  estimating  the 
effect  of  the  act  of  the  last  session  upon  funding  treasury  nct<!s.  The 
loans  in  which  such  notes  are  funded,  arc  those  mentioned  in  the 
schedule  as  loans  of  May  16th  and  August  1 9th.  The  amount  of 
those  loans  as  reported  at  the  last  meeting  of  Congress  was  on  1st 
August  $41,577,250. 
By  the  statement  now  reported,  the  total  amount   of 

these  bonds  is,  $73,999,400  00 

From  which  should  be  deducted  timount  on   hand  not 

yet  disposed  of,  say  8.000,000  00 

$65,999,400  00 
And   in   order  to   ascertain  the   amount   of  treasury 
notes  funded,  there  must  be  deducted  for  the  bonds 
issued  for  produce,  say  7,000,000  00 

«  

$58,999,400  00 
Deduct  amount  reported  1st  August,  41,577.250  00 


Balance,  ^,  $17,^22,150  00 

/J  8  7a 


Tills  balance  sliotrs  the   imount  of  trcrtsurj  notes   fun'Ic<l  in  live 
no:»<li»,  the  avcra;;e  being  about  3  1-2  millions  per  month. 
During  Iho  sarac  period  the   interc.«t-bearing  trc»- 

Hurj  notes  have  incrca-^cd  from  S^2,7J)d,9i)()  (M) 

To  .  12H,-18l),M()()   (U) 


Inoreape.  .  $n7,GS;),l(lo  dO 

From  which  deduct  notes  on  h:iml,  1 1,Ut)4,6(»0  (10 


Real  increase,  $85,775.a(M)  t)() 

This  large  increase  of  interest  bearing  notes  affords  satisfactory 
cvitlrnco  that  the  issue  of  them  was  a  judicious  measare;  and  for  any 
oriliiinry  war.  the  bonds  and  interest  notes  ninounting  together  to  a 
monthly  pale  of  twenty  and  a  half  millicns  would  have  sustained  the 
(jovcrninent  witliotjt  any  resort  to  paper  currency.  But  the  estimates 
call  for  more  than  twice  the  amounts  furnished  by  these  resources; 
»Ti'l  we  arc  compelled  to  resort  to  the  Treasury  Notes  to  supply  the- 
dilicicnfy.  It  becomes,  then,  a  most  importniit  eucjuiry  whether  the 
k^suc  of  such  notes  can  be  continued,  and,  if  it  can,  then  to  what 
extent? 

Iti  a  former  report  it  was  shown  that  the  circulation  of  the  Coufeil- 
era!«'  StiUes  before  the  war  might  be  estimated  at  one  hundred  millions 
of  (li'llars.  In  the  existing  st.ite  of  things,  it  is  probaldo  that  a 
larger  amount  of  currency  is  required.  In  time  of  peace,  money 
pissc'H  rapidly  from  hand  to  hand,  and  the  same  money,  in  a  single 
div.  will  discharge  many  obligations.  A  large  portion,  too,  of  the 
ojKM-.itions  of  business  are  performed  b^  bills  of  exdiangc  and  bank 
chf*(  ks.  In  the  present  stagnation  of  commerce  and  intercourse, 
lar^f'T  omount.n  of  ready  money  arc  kept  on  hand  by  each  individual, 
Btid  iho  Confederate  treasury  note-^  and  call  certificates  are  used  as  a 
i^ubstilutes  for  bills  and  drafts  to  a  considerable  extent.  If  this  view 
be  just,  wo  may  venture  to  a  Id  as  u>uch  ha  fifty  por  cent,  to  the  usunl 
ajinM.iit  of  currency,  and  this  would  raise  the  sum  total  at  which  it 
Lii;:ht  stand,  to  one  hundretl  and  fifty  millions.  The  difference  bo- 
t'Aiiii  this  sum  and  the  actual  circulation  will  show  the  redundancy. 
Tlic  actual  circulation  embVaces  not  only  treasury  notes  but  bank 
r.'';<''  and  State  enjis.'-ions  of  treasury  notes.  In  ordinary  times  coin 
ViiiM  :l^^o  fornj  a  pari ;  but,  at  present,  not  only  the  coin  but  a  large 
portion  of  the  bank  notes  have  been  withdrawn  from  circulation. 

The  i3SU(#of  treasury  notes  on  the  last  day  of  December  amounted 
to  $29.),149,G92,  exclusive  of  interest  bearing  notes.  By  adding  to 
this  sum  a  sulTieient  amount  to  cover  the  State  treasury  notes  and  the 
tank  notes  in  circulation,  wo  can  arrive  at  the  sum  total  of  the  cur- 
rency. Twenty  millions  added  to  the  treasury  notes  would  probably 
rejirescnt  the  whole. 

It  is  this  aggregate  which  must  be  kept  in  view  when  wo  deal  with 
the  currency  as  a  measure  of  values.  It  is  the  whole  mass  as  it  is 
Boceptod  by  the  community  in  exchange  for  its  various  commodities, 
vhich,  by  its  proportional  relation  to  those  commodities,  determines 


tlieir  prices.  By  a  law  as  invariable  as  any  law  of  physical  nature, 
these  prices  rise  or  fall  with,  the  actual  volume  of  the  whole  currency. 
Neither  skill  nor  power  can  vary  the  result.  It  is,  in  fact,  a  relation 
subsisting  between  two  nuuibcrs,  the  one  representing  the  total  values 
■of  property,  and  the  other  tlie  total  circulating  medium.  The  nature 
•of  that  medium  cannot  change  it.  It  avouM  exist  with  a  currency  of 
.gold  with  as  much  certainty  as  with  one  of  paper,  if  the  gold  were 
kept  within  the  country  by  restraints  equal  to  those 'which  retain  the 
paper. 

Assuming,  then,  that  entire  confidence  exists  in  our  currency,  the 
jiiere  fact  that  its  actual  volume  has  beea  increased  threefold  would 
lead  us  to  expect  a  corresponding  increase  ia  prices.  8uch  increase, 
although  eventually  certain,  does  not  usually  appear  at  the  same 
moment  with  the  expansion.  Lilce  the  moon's  attraction  upon 
the  ocean,  the  time  of  high  water  is  postponed  for  a  certain  period 
beyond  the  moment  at  which  the  influence  has  been  exerted,  and  tlie 
Sength  of  the  interval  is  affected  by  exceptional  causes.  But  although 
there  may  be  delay,  the  event  is  certain.  Prices  will  reach  the  height 
adjusted  by  the  scale  of  issues,  and  they  can  only  be  restored  to  tlieir 
^lsu:ll  condition  by  a  return  to  the  normal  standard  of  currency.  In 
other  words,  the  only  remedy  for  an  inflated  currency  is  a  reduction 
of  the  circulating  medium.      Is  this  reduction  practicable? 

Before  answering  tl^s  question  it  is  important  tiiat  wo  should  hi 
fully  assured  of  the  excessive  issue  of  paper  currency.  If  thQ  coun- 
try were  open  to  foreign  iatercourse,  the  difference  in  value  between 
coin  and  paper  money  would  at  once  afford  a  test.  But  in  the  present 
condition  of  trade,  coin  cannot  be  imported,  and  gold  nnd  silver  hav« 
become  articles  of  commerce  like  iron  and  lead.  T  ey  c  mnot,  tlu-rc- 
fore,  take  their  usual  place  as  absolute  measures  of  value. 

Difficulties,  somewhat  of  the  same  kind,  attend  other  tests,  euch  as 
bills  of  exchange,  real  estate  or  commodities  in  general  use,  and  of 
which  there  is  no  scarcity.  Ordinarily,  the  average  price  of  wheat, 
grain  and  other  like  aiticlcs  of  prime  necessity  would  furnish  a  guide. 
But  the  want  of  transportaiion  causes  a  fluctuation  of  demand  ini'l 
supply  from  day  to  day  and  thus  deranges  prices.  Making  all  due 
allowances  for  fluctuation  we  find  that  the  present  pricc^j  of  such 
Articles  range  at  nearly  three  times  the  usual  peace  prices.  Notwith- 
standing the  interruption  of  commerce,  we  find  also,  that  the  foreign 
<}xchanges,  and  even  coin  stand  at  nearly  the  same  rate.  Reasons  of 
41  differeut  character,  but  of  equal  force,  apply  to  real  estate  and  jiro 
vent  its  price  from  being  a  proper  guide.  The  general  increase,  how- 
ever, in  its  nominal  value  confirms  the  conclusions  d'.'<luced  from  the 
other  tests.  These  ficts  unite  in  establishing  beyond  doubt,  both  the 
actual  redundancy  of  the  currency  and  its  probable  rate  of  excess. 

The  remedy  which  is  required,  ifl  order  to  be  effective,  must,  there- 
fore, withdraw  two- thirds  of  the  entire  volume  of  the  currency. 

The  measures  already  adopted  by  Congrpss  were  intended  to  act  in 
this  direction.  The  treasury  notes  were  all  made  fundable  originallj 
an  eight  per  cent,  securities,  and  it  was  supposed  that  the  holders  of 
notes  wo«lJ  prefer  investing  thcui   in  bon  Is,  rather  than  hold  thein 


'i:<T    \:> 


'.e^\.     To  8tim»latc  invcBtmonts  the  holders  have  been 
s  ■!  of  1.1^!  xcji^ion,  that,  after  the  22<1  April,  ihey  cud 
•    ;;;    <  :  'Ui   per  cent,   securities.      The.'C  measures, 
\  -       '       :no«l.  are  over|x>werc(l  by  the  i. 

TV  t<»  iiirre.xse  its  issues.      Notw  . 

I  itjvc:<lin'nts  in  honvls.  the  currcMicy  coiiuiiiu'd 

r  .    ^.  iHiity.     This  incroa.ne  cau.^cs  a  <l.ii)y  alvuiicc  ii>  . 

pr:  .  •«,  and  the  ueroHsitics  of  live  (iovernmenl  compel  it  to  purchase 
I*  •  ]         -*      The  p.ijinont  of  enhanced   prices  again   compels* 

f  .^p  in  the  iH-Hues,  and  an  ascendin;;  series  of  action  and 

r  1  between  prices  :ind  issues,  which,  if  not 

I  uHciueiices  disa.strous  to  the  best  interests 

( I  the  country. 

Tlieso  effects  are  ha.stencd  by  the  injurious  ojMjration  of  the  excess 
r  rurrcncy  upon   the  bonds  of  the   Government.     These   bonds  are 
r  "  f-r  the  treasury  notes,  and  the  high  rate  of  in- 

i  is  the  indueeujcnt  to  take  them.      In  our  pre- 

»*-u:  (jrcumstanres  iliis  interest  must  be  pai^l  in  treasury  notes.  Hy 
dej'Kcialing  these  notes  the  interest  suffers  e<jiuil  dep.rec»ation ;  and 
■  n  eiifhl  per  e -nt.  bond  becomes,' in  effect,  a  four  or  three  per  cent., 

•  '      •  !  '       '   i  -      -!  of  treasury  notes.     The  inducements 

.  'Vcd,  and  the  bonds  themselves  cease  to 

I  1  relief  to  tiie  currcney.  They  offer  still  less  inducement  to  any 
f  :n  purchaser,  because  ho  is  informed  by  tlic  rate  of  exchange, 
t  his  interest  will  be  paid  in  a  currency  which  must  be  exchanged 
f  H  own  at  the  rate  of  three  (hdlars  for  one.  It  is  pl.iin.  thero- 
f  .  that  the  ehnnj:*'  rcfjuired  is  a  prompt  reduction  of  the  currency 
t'l  it«  normal  :.     The  question  recurs,  is  this  praeticalde  ? 

,\t  the  la^'.  i  of  Congress  an   effort  was  made  to  attain  thi* 

ri'suli  by  the  proposal  for  a  losm  of  one  fifth  of  nil  gross  income,  to 

*  ■    itl  in  treasury  notes  in  exchange  for  bonds,     ^he  adoption  of  this 

iro  \Toul  1  have  retired  a  largo  amount  of  treasury  notes  at  an 
■io'l.  :nil  wixild  thus  have  checked  the  advance  i»f  prices.     Il 
-fMlutie  f.f  t-M'ry  such  failure  that  it  leaves  the  evils  incrcas- 
!  a  double  r.itio;  and  subsequent  remedies  must  be  so  much  the 
.    .     hlringeiit.      All  the  witisos  of  excess  continue  in  full  operation. 
TriceH  incruase:  llie  (Jovernment  is  compelled  to  purcha.se,  and  the 
;  •  piid  by  new  issues.      E;Kh  new  operation  aggra- 

ainl  hesitation  or  <lclay  is  ruinous, 
i  iic  conditiouH  then  which  any  sulHcient  remedy  must  fulfil,  arc  first, 
prompt,  and  si-condly,  effective  reduction.  To  be  effective,  the  cur- 
rency must  be  reduced  at  least  to  the  one  hundred  and  fifty  millions 
•Il  idy  hhown  to  be  its  e\treni<»  limit;  and  this  re<lucti<tn  mu-it  be  so 
f'.i  i;ij»t  a.1  to  ttke  effect  Ix^fore  prices  can  undergo  further  increase. 

To  meet  tlusv  conditions,  1  would  respectfully  propose  that  after 
the  l.ipse  of  a  reiisunablc  time,  the  issues  of  treasury  notes  bearing 
dale  prior  to  the  1st  December,  1862,  shall  cease  to  be  currency. 
This  can  be  done  with  the  least  possible  injury  by  following  up  the 
l^ction  of  Congress  at  the  last  se.«»Lon,  and  fixing  a  period  of  l.mitsv- 
tiou  fur  funding  those  notes. 

% 


As  the  law  now  stands,  these  notes  are  receivable  for  government 
dues;  and  the  holder  is  entitled  to  fund  them  in  eight  per  cent  secu- 
rities, until  the  22d  April  next,  after  which  date  he  can  fund  in  seven 
per  cent.  I  propose  simply  to  fix  a  period  of  limitation  for  the  exer- 
cise of  this  last  mentioned  privilege ;  by  enacting,  that  after  1st  July 
next,  the  privilege  of  funding  these  notes,  shall  cease.  Six  months 
have  already  been  allowed  for  investment  in  eight  per  cent,  securities, 
according  to  the  contract  on  the  face  of  the  note.  Two  months  more 
will  l>e  allowed  for  investment  in  seven  per  cent,  and  if,  after  so  long 
a  notice,  the  holders  do  not  choose  to  avail  themselves  of  their  privi- 
lege, the  good  faith  of  the  Government  will  stand  clear  of  imputation. 

But  it  is  essential  to  good  faith  that  ample  means  should  be  provided 
by  the  Government,  to  secure  and  pay  the  principal  and  interest  of 
the  securities  in  which  the  holders  are  required  to  invest.  This  can 
only  be  effected  by  an  ample  and  permanent  tax.  Such  a  tax  is  the 
corner  stone  of  the  whole  fabric.  Without  it,  the  scheme  has  no 
foundation,  and  can  secure  neither  public  confidence  nor  success. 
The  proper  extent  of  this  tax  will,  hereafter,  be  considered.  It  ia 
sufficient  for  the  present  to  affirm  that  it  must,  at  least,  pay  the  inter- 
est on  the  entire  public  debt. 

To  give  completeness  to  .the  plan,  it  would  seem  proper  to  provide 
measures  for  any  futilre  redundancy.  We  are  happilv  relieved  from 
this  necessity  by  the  patriotic  proposal  of  several  of  the  States  to 
guaranty  the  whole,  or  a  large  portion  of  the  war  debt  of  this  Gov- 
ernment. If  all  the  States  can  be  induced,  promptly  to  adopt  this 
measure,  means  will  thereby  be  furnished  to  absorb  any  excess  of  the 
new  issues  over  the  proper  amount  of  currency.  The  guaranty  of 
the  States  will  enable  this  Government  to  reduce  the  interest  of  its 
bonds  to  six  per  cent.,  and  if  the  States  can  be  prevailed  upon  to  ex- 
tend the  guaranty  so  as  to  cover  the  whole  war  debt,  or  at  least  four 
or  five  hundred  millions  thereof,  the  saving  in  interest  will  be  so  great 
as  to  enable  the  Government,  in  due  time,  to  extinguish  the  whole 
principal  of  its  debt.  Upon  a  debt  of  o'W  millions,  this  saving  will 
be  just  ten  millions.  The  ability  to  apply  this  amount  to  the  princi- 
pal iustcad  of  the  interest,  affords  such  obvious  advantages,  as  to 
ensure  the  favorble  consideration  both  of  Congress  and  of  the  States. 

An  analysis  of  the  scheme  proposed,  will  reduce  it  to  three  essen- 
tial features : 

1.  A  limitation  upon  the  privilege  of  funding  the  notes  issued,, 
prior  to  1st  December. 

2.  A  war  tax. 

3.  A  guaranty  by  the  States. 

I.  In  considering  the  first  of  these  features,  the  first  enquiry 
which  suggests  itself  is,  what  will  be  the  effect  of  this  limitation  ? 
Will  it  arrest  the  circulation  of  the  notes  and  lessen  the  volume  of 
currency  ? 

Its  first  effect  will  ceartainly  be  to  add  another  stimulant  to  invest- 
ment in  bond.*?.  It  was  unfortunate  that  the  act  of  the  hist  session 
postponed  the  change  of  interest  for  six  months.  The  delay  has  <le- 
prived  the    remedy  of  much   of  its   efficacy,  and  good  faith   requirea- 


th«t  < '1  '«'r   its  operation.     Otlicr- 

wjKC.   .  ,      ,  funding  privilcj^e  to  \»t  M:»y, 

inctemtl  of  1st   July.     The  effect   of  the  stimulant   is  thus  retarded. 

Still  i'     '" '    •  there  is  a  perio<l   of  limitation,  trill  induce  holders 

toco:  t  expiree.     Thopc  who  desire  to  secure   eipht  per 

r-  .1  come  in   l»eforc  the  2'2d   April,  or    hold  jip  until 

I  notes   which    secure    that    right,  and  all  who    can, 

•>  the    l>«t  July,  to  save   the    final   exclusion.      It   is 

j,:o,  ..  ..  . that  throughout  the  entire   period  an  amount  will 

1ms  «ttli<irnwti.  hunicicot  to  check  any  rapid  advance  in  the  total  amount 

I  iC  final  date  of  limitation  approaches,  the  notes  will  not 

p.i  ily  from  hand  to  hand;   and  tin- result  will  he   that   they  are 

ihii  .  li  ui  of  ordinary  circulation  and  relieve  the  currency  to  that 
exicut.  The  comparatively  smaU  amount  then  left  in  the  hands  of 
iodiv    '      '  "  to  have   a  purchasinp   power.      They  will   pass 

only  ;<  t.  ami  their   chief  value   will   consist  in    their 

It  1  dues.      If  at  this  point    the  (iovern- 

ni'  to  absorb  the  whole  remnant,  the  relief 

affurdeit  to  the  community  nn<i  the  currency  will  be  made  complete. 

Hit'  -'  '^f  policy  of  the  Government  has  sought  to  .absorb  the 
rircii  inducements  alone.      Bonds  at  u  Iiigh   rate  of   interest 

li '  but  the  imlucement  has  been   abated  by  the  di'|)ro- 

c  i.i  ;  (.'Tiey  in  which  the  interest  is  paid.      It  is  proposed 

now  to  ^uJlply  the  deficiency  by  a  small  portion  of  constraint.  We 
»ce  on  every  hide  of  us  indications  of  the  a]>undancc  of  money.  Largo 
Rumn  arc  everywhere  held  on  dej)()Hitc  ;  but  the  holders  propose  for 
t1  '  ■■  cnts   than  public    securities,      'ilio 

.  urns,  and  to  hull!  thi'in  for  an  inddi- 

nitr  mill-,  proves  tiiat  no  serious  <iamage  will  be  suffered  by  re<iuiring 
ihi-ir  euuwrsiun  into  bonds.  The  large  amount  of  money,  which  is 
hbuwii  by  the  war  tax  returns,  to  be  invested  at  interest  in  private 
haiid-.  ft. I.'  '      '    lief  that  there  is  no  want  of  cajiital    among  our 

p*").!.'       1  em  to  be  a   rash   C(»nclusio.i,  tberefore,  that  at 

1'  uilipi  of  the  currency  out-standing  on    1st    December, 

ii  I  without  sub.4lantial   damage   to  private   interests.      If 

(he  remaining  fourth  could  be  absorbed  by  a  tax,  the  solution  cf  the 
probji  in  woubl  then  be  complete.  The  ])eople  are  fully  prepared  for 
the  priVM-nt  of  a  high  tax.  It  may  not  be  practicable  to  place  it  at 
ho  lii;:li  a  rate  as  to  abhorb  one-fourth  of  the  entire  currency  to  bo 
called  jn.  biu  it  may  approach  ho  nearly  as  to  leave  unabsorbod  only 
that  portion  which  will  remain  out-standing,  in  spite  of  all  efforts  to 
f'all  it  in.  , 

1  will  not  venture  to  aasert  that  grave  objections  may  not  be  made 
to  this  scheme       ;>-■••  ,,^  ,y,|j  j,g  fou„,l  jn    the    way    of  every 

plan.      Tbeyarrii  Us  of  the  ]>roportions  of  the  war  which 

IS  waged  against  us,  and  of  the  enormous  sums  of  money  required  to 
carry  it  on.  liut  it -appears  to  me  that  upon  du3  examination,  these 
objections,  if  not  entirely  obviated,  will  be  found  to  be  counterbalanced 
\y  cijuivalent  advantages. 


The  first  and  most  obvious  objection  to  the  scheme,  is  that  it  is  an 
infringement  of  the  contract.  The  notes  have  been  accepted  upon 
the  promise  of  the  Government  that  they  may  be  invested  in  interest- 
bearing  public  securities,  and  that  promise  is  not  fulfilled  after  the 
1st  July  next. 

It  might  be  answered  that  Congress  has  already  settled  this  princi- 
ple by  the  act  of  last  session,  which  reduced  the  interest  from  eight 
to  seven  per  cent.  A  still  better  answer  will  be  found  in  the  reasons 
which  led  to  that  act,  and  which  make  necessary  the  one  now  proposed. 
A  limitation  of  time  for  the  performance  of  contracts,  has  never  been 
considered  an  infringement  where  sufficient  opportunity  is  given  to 
cl  dm  performance.  Justice  is  satisfied  by  giving  o  tlie  party  full 
opportunity  to  receive  the  benefit  of  his  contract.  Upon  this  princi- 
ple rests  -iverj  change  in  statutes  of  limitation.  Examples  of  the 
same  principle  are  aftorded  in  private  patters,  by  the  laws  of  partner- 
ship and  for  the  administration  of  assetts.  In  public  matters,  the 
history  of  every  nation  affords  like  precedents,  which  will  probably 
find  support  in  the  laws  of  every  State  in  our  Confederacy. 

The  modification  of  the  contract  is  substantially  for  the  benefit  of 
both  parties.  The  object  in  view  is  to  increase  thf  value  of  the  whole 
remaining  currency.  This  object  it  effects  by  increasing  the  pur- 
chasing power  of  each  note,  in  proportion  to  the  reduction  of  the 
whole.  Assuming  this  redtfttion  to  be  two-thirds,  it  follows  that 
every  holder  of  only  one-third,  in  proportion  of  the  new  issues  will 
have  the  same  value  in  money  left,  after  he  shall  have  invested  the 
other  two-thirds  in  bonds.  In  other  words,  he  will  make  a  clear  gain 
of  those  two-thirds.  If  he  shall  have  in  his  possession  none  of  the 
new  issues,  he  will,  nevertheless,  gain  in  the  reduced  price  of  every 
article  of  consumption. 

2.  Next  it  will  objected,  that  after  the  lapse  of  the  period  of  limi- 
tation, the  value  of  the  note  as  money  is  taken  away.  It  is  true  that 
the  note  will  lose  its  function  as  money  ;  but  its  intrinsic  value  is 
unimpaired.  It  is  still  receivable  for  public  dues,  and  it  still  has  the 
faith  and  prop«rty  of  the  Confederate  k>tates  pledged  for  its  payment. 
It  will  even  have  a  modified  circulation.  A  great  public  exigency  has 
arisen  which  compels  a  change,  and  all  that  the  Government  can  do  is 
to  make  the  change  with  as  little  injury  to  private  rights  as  possible. 
This  it  endeavors  to  do  by  avoiding  any  direct  intcrfercnpc  with  the 
contract,  and  by  giving  to  the  holder  ample  opportunity  to  reap  all  its 
advantages.  The  time  for  the  enjoyment  of  these  advantages  was  no 
part  of  the  contract,  an<l  every  holder  was  bouud  to  know  that  such 
an  incident  has  always  been  considered  within  the  control  of  the  law- 
making power. 

3.  It  will  be  urged  that  the  calling  in  tlio  circulation  as  proposed 
will  cause  too  large  and  sudden  a  contraction.  An  exaininatif>n  of 
the  probable  state  of  the  currency  at  the  date  of  limitation  will  sho\y 
this  objection  to  be  unsound.  The  new  circulation  to  be  issued  after 
the  first  December,  will  on  first  July  probably  be  upwards  of  two  hun- 
drefl  millions.  It  will  be  issuedgradually,  and  will  fill  up  the  channels 
left  l)y  the  funding  of  the  old  issues,  and  so  far   from   producing  con- 


10 

Kc  in  excess  at  too  early  a  <lite. 

I  ;  "f  currency  is   in  that  «lir<-ctiou. 

4.  A  fourih   oijcciion   will  he  I'ouml   in  the   proUnhle  cflTect  on  the 

priT'-  ^f  ' i-      The  larjfe  amount  of  currency  turncit  into  bonds  will 

can-  to  outrun  the  cleninnd.  and  the  usual  consequences  of 

'    t  will  follow.      It  cannot  he  denied  that 

ly   fall.      Hut    this  full    will  in    truth  he 

ti.il.  ami    will    hiid  a   full   compensation  in    the   inereuxcd 

...4..         ...;  currency  for  which  they  are  sold,  and  in  which  the  interest 

will  be  paid.     Tho^c  classes  of  the  community  which  sell  bon<ls  from 

^       '  lis  of  livin;;,  will  probaldy  gain    more  in  the 

the  articles  which  they   purchase   than  the? 

in  ihf   rr'lm.-ed  market  value   of  the  homls   wliich  they  sell. 

iio  hohl  the  honds  on  speculation,  would  gain  or  lose  according 

to  their  ability  to  hold  them ;   i^iile  all  those  who  have  taken  them  as 

investment  will  escape  injtiry  l»y  simply   holding   them   according   to 

their  «triginal  ptnpi»>c.      The  contraction  of  the  currency  will  increase 

the  vrjlut*  of  the  interest  paid  thorn  during  the  war;   and  at  the  end  of 

it.  they  uill  have  a  security   which  will    conunand  a   jirice  which    will 

amply  repay  their  confidence. 

The   most  conclusive  answer,   however,  to   this   olijeclion  is    to   bo 

foun<l  in  the  fact  that  whatever  may  be  the  amount  of  depreciation  on 

K.  it  cai!  "d  the  dcpreciaPion    in  the   value  of  the  cur- 

If  the  (>  .   lit  must  issue  an    obligation  in   the  Hhaj)e  of 

currency  to  pay   twcniy-one  dolLirs  for  a   barrel  of  Hour,  which    in  a 

Duniial  condition  uf  the  currency  could  be  purchased  with  seven,  it  is 

actually  selling  its  paper  at  one  third  of  its  face.     At  the  same  time, 

V  "!'.  it  is  disturbing  all  other  values,  and  all   the  com- 

■    of  society.     The  tUprcciation    in  the   bonds   could 

ich  tins  high  rate;   neiihor  would  it  aflect  the  prices  of  com- 

or  commercial  relations.     If  then  we  are  reduced  to  a  choice 

between  crils,  the   reduced  value  in  the  bonds  is   manifestly  the  loss. 

11.    We  come  now  to  the  consideration  of  the  ne.vt  greit  feature  in 

the  scheme,  namely  :   the  war  tax.      What  sliall  be  the  subjects  of  that 

tax.  and  what  amount  should  it  raise  ? 

The  subjects  upon  which  a  tax  may  be  levied  are  many,  and  the 
expediency  of  each  involves  questions  which  it  is  not  proposed  at 
present  to  dimruss.  It  seems  to  mo  that  a  tax  upon  property  and 
inconif*  is  so  much  to  be  preferred  to  stamp  duties,  excises,  licenses, 
and  other  liko^tJixes  which  call  f(tr  a  machinery  vexatious  in  its  char- 
acter and  expensive  in  its  operation,  that  there  will  be  little  hesita- 
tion on  the  part  »f  Congress  in  its  acceptance.  The  direct  tax  here- 
tofore levied  has  set  in  operation  all  the  machinery  necessary  to  levy 
another:  and  an  income  tax  could  bo  collected  by  the  same  means. 
It  .'■  lie  that  both  tiiese  forms  of  tax    should   be  ailopted.     To 

lj»y  ut  tax  upon  property  alone   would   re((uire  too   largo    an 

incre.iM'  III  the  rate  of  last  year.  Such  an  increase  would  operate 
with  peculiar  hardship  upon  property  producing  no  income.  On  the 
other  hand,  a  tax  upon  income  is  so  easily  evaded,  that  of  itself  it 
vould  furnish  an   insecure   resource.       It  is  proper,  however,  that 


11 

incomes  should  be  taxed;  otherwise  the  whole  profits  of  speculation 
and  trade  together,  with  those  resulting  from  skill  and  labor  would 
escape  contribution.  I  piopose,  therefore,  that  a  tax  be  imposed  upon 
property,  and  upon  the  gross  amount  of  incomes  of  every  kind,  ex- 
cepting those  below  some  minimum  to  be  adjusted  by  Congress. 

The  next  enquiry  is  as  to  the  rates  of  these  taxes,  to  adjust  which, 
it  must  first  be  ascertained  what  amount  it  is  necessary  to  raise.  It 
has  already  been  shown  that  up  to  the  first  July  next,  the  treasury 
notes  in  circulation  will  exceed  $5  )(),01)0,UOU  00 

Deduct  the  circulation  proposed  to  be  left,  say  lo;),000,OlJO  00 

Remaining  funded,  :$350,o;)0,Oi)0  00 


The  annual  interest  on  this  sum  at  8  p.>r  cent,  is  ^23,000,000  00 
To  this  must  be  added  the  interest  upon  about  120 

millions  of  7.30  notes,  8,760,000  i)0 

And  upon  60  millions  of  6  per  cent,  certificates.  3,600,000  00 
Also  the  interest  ujion  S  per  cent,  bonds  and  stock, 

say  about  100  millions,  8,000,000  00 


$48,360,000  00 


This  amount  shows  the  lowest  figures  which  shoul  I  be  raised  by  the 
tax.  The  soundest  considerations  of  policy  would  add  as  largely  to 
this  sum  as  the  people  of  our  country  can  boar.  If  the  tax  be  made 
pa}' able  in  all  kinds  of  treasury  notes,  it  would  absorb  so  much  of  the 
first  issues,  and  by  reducing  the  amount  to  be  funded,  would  abate  the 
force  of  the  objections  to  the  sclieme.  If  sixty  millions  of  notes 
could  be  thus  called  in,  the  benefits  resulting  would  fully  counter- 
balance every  possible  hardship.  The  currency  would  promptly 
recover  its  value,  the  bonds  would  become  an  object  of  investment 
instead  of  being  thrown  on  the  market,  and  a  sure  and  steady  system 
of  finance  would  be  established. 

A  tax  of  one  per  cent,  on  property  if  it  could  be  made  as  produc- 
tive as  last  year's,  would  raise  twice  the  amount  of  the  last  war  tax, 
say  forty  millions.  But  inasmuch  as  portions  of  the  States  are  in  the 
hands  of  the  jnemy,  it  would  be  proper  to  make  a  deduction  of  proba- 
bly one-tenth,  which  would  leave  the  amount  at  only  thirty-six 
millions. 

This  sum- would  be  subject  to  still  further  abatement,  so  long  as  the 
decision  of  the  Confederate  Court  of  South  Carolina  as  to  the  power  of 
Congress  to  tax  State  bonds  remains  unreversed  The  very  large 
amount  of  money  invested  in  this  form  was  included  in  the  war  tax 
act  of  the  last  year,  and  the  tax  thereon  was  paid  everywKere,  except 
by  those  who  raised  the  question  in  South  Carolina.  For  the  ensuing 
year  the  case  would  be  different.  If  the  same  tax  were  laid  by  Con- 
gress, it  is  probable  that  the  holders  of  State  bonds  would  claim 
exemption  under  this  decision,  and  Congress  itself  might  be  unwilling 
to  re-enact  in  the  same  form,  a  law  which  had  been  declared  uncon- 
stitutional by  the  co-ordinate  branch  of  the    Government,  until  that 


12 

i«    reversed.      The    question    is    of    sueh    nia£jnini<le    nntl 

1. -.    such  great   interests  that  au  appeal  was  taken.      IJut  thi.<< 

appeal  cannot  be  decide*!  until  a  Supreme  Court  shall  be  organised.  It 
J         '  *'     .    '        fore,  of  the  consideration  of  Oongrcs-'.  whetlier 

1  .    .   not  be  raised  in    another  form.  I)y  Inxinj;  the 

ids  in  the  hands  of  the  citizenr?.  The  taxinj;  power 
t  ,.e  hands  of  ihc  citizen  for  consumption  may  he  (ii^tin- 

gttisbrd  from  that  over  State  bon<l8,  specifically  as  property.  In  my 
view,  both  are  constitutional,  and  the  public  interest?  demand  that 
every  proper  effort  should  bu  made  to  ensure  consideration  of  the 
iu  all  its  aspects.  In  either  case,"  however,  the  tax  would 
\  prove    unprotluctive,   until    the  question    f-hall    be    finally 

decided.  It  is  necessary,  thercfow?,  to  estimate  for  an  abatement  on 
the  tax  of  last  year.  Assuming  one  hundred  millions  as  the  probable 
amount  invested  in  State  securities,  a  tax  of  one  per  cent,  woubl 
amount  to  one  million  of  dollars,  and  !?o  much  mnsst,  therefore,  be 
ab:ited  from  the  estimate. 

In  estimating  the  rate  of  a  tax  on  incomes,  the  only  basis  to  which 
I  can  refer,  is  the  value  of  the  entire  property  in  the  eleven  Confed- 
erate States.  It  may  bo  assumed  that  the  nett  income  of  this  property 
i  lied  by  the  average  rate  of  k-gal  interest  of  the  money  which 

:  Is  its  value.      If  the  tax  were  laid  upon  nett  income,  and  that 

iuL'uun;  were  faithfully  returned,  it  could,  in  this  way,  be  estim:ite<l 
with  some  degree  of  accuracy.  But  the  devices  are  so  many  by 
which  a  return  of  nett  income  can  be  evaded  as  to  make  such  returns 
unrtdiablc.  A  resort  to  gross  income  is  therefore  more  expedient. 
The  difference  between  the  two  must  be  at  least  25  per  cent.,  but, 
undiT  existing  circumstances,  and  for  the  purpoae  of  an  estimate  it 
would  be  prudent  to  disregard  the  difference  and  assume  that  tiie 
returns  of  groiis  income  will  be  about  equal  to  the  average  rate  of 
legal  interest.  It  is  belitved  that  even  iho  proceeds  of  skill,  specu- 
lation and  la'tor  which  may  be  returned  where  no  capital  is  involved 
will  not  materially  vary  the  result.  *     • 

The  estimate  formerly  rnado  to  Congress  of  the  value  of  all  the 
property  in  the  eleven  Confederate  States,  in  which  taxes  h.ivo  been 
collected,  was  •l,(>3!  millions.  If  we  leave  out  the  odd  numbers  in 
these  figures,  on  account  of  such  property  as  is  now  beyond  the  reach 
of  taxation,  and  for  other  c»tntingcncies,  we  have  in  round  numb.crs, 
4,i»;ii;  iiiilli(.n.4.  The  average  of  interest  in  the  Confederate  States 
may  be  set  down  at  7  per  cent  ,  which  would  make  the  total  inconffe 
equal,  to  say  2M:i  millions.  A  tax  of  |(l  per  cent,  on  ibis  sum  would 
pro<luce,  in  the  gross,  about  2.S  millions.  And  this  added  to  the  pro- 
perty tax  of  35  millions,  would  raise  a  sum  total  of  (13  millions  of 
dollars,  or  in  round  numbers,  sixty  millions  after  deducting  exficnses 
and  contingencies. 

It  will  probably  be  insisted  that  there  is  no  occasion  for  tlieiniposi- 
tion  of  so  heavy  a  tax  ;  and  many  will  contend  that  it  is  sufTicicnt  that 
the  Government  pay  the  interest  alone  of  the  public  debt.  I  ask  leave 
most  earnestly,  to  dissent  from  this  doctrine,  and  to  urge  upon  Con- 
gress a  continuance  of  the  policy  already  adopted  by  this  Government 


13 

of  making  portions  of  the  public  debt  payable  every  six  months  after 
the  probable  termination  of  the  war.  The  sinking  funds  devised  by 
Mr.  Pitt,  and  the  great  statesmen  of  his  times,  have  proved  deficient, 
not  in  principle,  but  in  administration.  The  principle  upon  which 
they  rest  is  the  annual  raising  of  an  amount  beyond  the  interest  for 
the  purpose  of  eventually  discharging  the  principal.  The  punctual 
investment  of  these  surplus  sums  at  compound  interest  by  the  mere 
operation  of  numbers,  would  be  certain  to  discharge  the  debt  in  a  given 
tinjG.  The  failure  of  this  plan,  in  its  effects  upon  the  public  debt  of 
England,  arose  from  defects  in  its  administration.  As  the  invested 
fund  increased  in  amount,  it  offiircd  constant  temptation  to  the  Govern- 
ment to  make  use  of  it,  and  the  party  in  power  often  preferred  invent- 
ing pretexts  to  seize  upon  it,  or  to  court  public  favor  by  calling  off 
unpopular  taxes  required  for  its  increase  rather  than  continue  or  aug- 
ment those  taxes.  Besides,  the  neglect  to  make  punctual  itivestments 
as  the  interest  accrued  had  a  constant  tendency  to  reduce  compound 
interest  to  simple;  and  thus  it  was  found  impossible,  in  along  course 
of  years,  to  preserve  the  fund  inviolate,  or  to  maintain  the  constant 
supply  from  taxes,  which  the  plan  demanded. 

The>'c  defects  are  believed  to  be  remedied  by  the  plan  upon  which 
the  one  hundred  million  loan  of  this  Government  has  been  issued.  It 
resembles  the  sinking  fund  plan  in  requiring  an  annual  surplus  of 
taxes  beyond  the  amount  of  interest  on  the  public  debt.  But  it  difi"(  rs 
from  it,  in  applying  this  surplus  to  the  immediate  reduction  of  prin- 
cipal. The  machinery  of  a  fund  is  dispensed  with,  together  with  all 
its  attendant  officials.  The  best  practical  investment  is  made  by  pay- 
ing off  so  much  of  the  public  debt :  and  the  temptations  and  waste  in- 
cident to  a  fund,  are  avoided.  The  full  benefit  of  a  sinking  fund  is  thus 
secured  without  its  disadvantages.  All  that  is  required  is  the  original 
adjustment  of  the  payments  of  principal  through  an  entire  series  of 
years,  and  the  steady  determination  of  Congress  to  raise  annually  a 
fixed  sum  sufficicLt  to  make  these  payments  in  addition  to  the  yearly 
intciest.  The  number  of  years  in  which  the  debt  will  be  paid,  Avill 
depend  upon  the  amount  of  this  fixed  sum.  In  proportion  to  its 
excess  over  the  annual  interest,  will  be  the  shortness  of  the  period. 
The  first  payments  of  principal  will  be  comparatively  small.  But 
each  will  diminish  the  interest  of  the  succeeding  year,  and  will 
thereby  set  free  a  larger  sum  annually  to  be  applied  to  pay  the 
remainng  principal,  until  the  debt  be  finally  discharged. 

The  act  of  Congress  of  12th  April,  18G2,  departed  from  this  plan, 
and  made  the  next  i.ssue  of  bonds  payable  in  3l)  years  subject  to 
redemption  at  any  time  after  the  expiration  of  ten  years.  The  whole 
subject  nnccssarily  comes  up  for  consideration  in  adjusting  the  tax 
now  to  be  laid  by  Congress. 

The  15  million  loan  carries  an  interest  of  S  per  cent;  it  is  pa\ablo 
in  ten  years,  but  may  be  redeemed  at  any  time  after  the  1st  Septem- 
ber, 1866.  The  one  hundred  million  loan  is  also  an  8  per  cent,  loan, 
and  is  made  payable  in  instalments  which  fall  due  every  six  months 
for  18  years,  fiom  1st  January,  1864.  The  first  instalment  of  prin- 
cipal of  $1,288,700    is   payable    1st   January,    1864;  the  second  of 


14 

$1.  '     I m  July.  1861.     The  tl  inl    loan  i?  under  the 

act         .., .      -  .  il  is  also  .m  H  per  cent.,  pay;»l>le  :i3  above  stateil, 

at  the  plennurc  of  the  Government  Rt  from  H»  to  30  years. 

If  '  '     :M  .-ipprovc  the  application  of  the  plan  of  the  one 

ln!  to    the    whole  <lcht    of  the  Government,  then  a 

il'  in  the  loan  of  .April,  ISG'2.  No  bonds  have 
I  that  act.  and  the  tnatter  is  yet  within  the  con- 
trol of  Congrenn.  A  mo<lification  of  the  law  must  be  made  at  any 
m!e  to  meet  the  reduction  of  interest  required  on  notes  issued  subse- 
q- lit  to  1st  December.  If  the  scheme  of  finance  hereinafter  pro- 
pose*!, in  relation  to  the  debt  guaranteed  by  the  States  sliall  find  favor 
with  Con;;rfss.  a  further  modification  of  the  loan  of  12th  Aj>ril,  1862, 
should  he  made  by  reducing  the  period  for  rcdcmptii  n  from  ten  years 
to  fivp.  This  change  will  enable  the  proceeds  of  the  sale  of  the  six 
percent.  Ixinds  guaranteed  by  the  States,  to  be  applied  in  discharge 
of  the  S  per  cent.  sH  the  end  of  five  years  in  case  they  cannot  be  pur- 
chased in  the  market  sooner. 

ill.  We  come  now  to  the  third  feature  in  the  scheme,  namely,  the 
guanmty  of  the  Suites. 

The  State  of  Virginia  led  the  way  and  proposed  that  Congress 
'1  li'vise  a  plan  for  a  loan  to  be  guarantied  by  the  States.  Con- 
i  not  sec  lit  to  take  any  action  on  the  suliject  at  its  last  session. 
il  waa  probably  «leemed  best  that  the  proposal  should  come  from  the 
Stales.  An  offer  of  their  guaranty  is  certainly  more  beneileial  to  the 
credit  of  the  Government  than  a  request  for  aid.  The  delay  has  given 
the  opportunity  to  the  States  to  make  the  offer.  The  State  of  Ala- 
bama lias  offered  a  guaranty  of  lier  quota  of  the  whole  war  debt  upon 
certain  ccn«liii<ins.  The  Stntenf  South  Carolina  has  ofl'ercd  to  guar- 
anty a  quota  t»f  two  hundred  millions  upon  certain  other  conditions. 
A  copy  <»f  the  action  of  their  respective  Legislatures  is  herewith 
vubmiltcd. 

The  varying  action  of  these  two  States  evinces  the  imjiortance  of 
'  ■        tive   j)lan    by  Congress.     It  is   proltable    that  every 

illy  resj)ond  to  such   plan  and   sustain   the  credit  of 
this  Government. 

The  great  advantages  to  be  «lcrivetl  from  this  guaranty  have  already 
been  somewhat  dcvelope<l.  It  is  only  necessary  now  to  give  jiromi- 
iicnee  to  two  of  them  :  Kirst,  the  opportuiiity  which  it  affords  of  con- 
verting an  eight  per  cent,  into  a  si.\  per  cent.  <lebt  ;  and,  secondly, 
the  premium  whieh  can  be  re;ili7,ed  on  the  sale  of  the  bonds.  The 
former  will  enalde  the  Government  to  establish  a  loan  on  the  princi- 
ple already  explained,  and  the  latter  will  place  in  its  hands  ample 
nicuns  to  call  in  the  redun«laney  of  treasury  notes  after  the  1st  July 
next,  and  to  sustain  the  cr<  dit  of  its  eight  per  cent,  securities  or  to 
purchase  them. 

Assuming  that  the  States  may  be  induced  to  extend  their  guaranty 
to  five  hundred  millions,  I  propose  to  adjust  the  debt  upon  the  plan 
of  the  hundred  million  loan  so  as  to  ensure  its  discharge  within  a 
given  period.  The  length  of  this  period  depends  upon  the  sum  which 
Congress  will  devote  to  the  annual  payments.     The  commencement  of 


15 

the  period  or  the  date  at  which  the  first  pajnnent  is  to  be  made  is,  of 
course,  within  the  control  of  Congress,  and  involves  the  same  inquiry 
as  to  the  amount  now  to  be  raised  by  taxes.  A  postponement  of  this  first 
payment  of  principal  would  seem  to  allow  a  diminution  of  the  tax. 
But  it  must  be  observed  that  some  considerable  time  must  elapse  be- 
fore the  guaranty  of  the  States  can  be  had  ;  and,  further  time  inust 
then  be  consumed  in  carrying  the  plan  into  execution  and  in  procur- 
ing returns  of  the  sales.  During  all  this  period  the  eight  per  cent, 
and  7.30  notes  are  outstanding,  and  will  absorb  nearly  as  much  more 
money  as  will  afterwards  be  required  to  meet  the  first  annual  pay- 
ments on  the  principal.  Besides  this,  it  cannot  be  too  strongly  urged 
that  the  present  is  the  appropriate  moment  at  which  to  commence  a 
pn^per  system  of  taxes.  The  patriotism  of  the  country  is  now  fully 
aroused.  The  duty  of  contributing  largely  to  the  support  of  tho 
Government  is  generally  recognized.  The  large  amount  of  money  in 
circulation  will  make  the  payment  easy,  and  the  payment  itself  will 
aid  the  tax  payer  by  reducing  prices  to  their  proper  condition. 

Before  leaving  this  subject,  I  would  respectfully  submit  that  there 
is  another  pi  :n  for  arranging  the  debt  in  instalments,  which  Avould 
produce  the  same  results.  It  is  by  issuing  all  the  bonds  in  the  usual 
form  payable  at  the  same  date,  and  attaching  to  them  a  condition  that 
tho  Secretary  of  the  Treasury  shall  ai\nually  or  semi-annually,  by 
lot,  designate  a  certain  portion  to  be  paid  off.  If  these  annual  pay- 
ments were  arranged  on  the  same  princijile  which  governs  the  one 
hundred  million  loan,  and  were  made  equally  obligatory  upon  the 
Government,  the  result  would  be  the  same. 

A  refeieuce  to  a  few  details  will  conclude  all  I  have  to  say  on  this 
subject : 

With  my  last  report  was  submitted  a  report  from  the  war  tax  ofiice, 
to  which  1  request  your  attention,  particularly  to  the  observations  iu 
relation  to  a  uniform  tax  on  slaves.  It  is  proper,  also,  to  make  pro- 
.vision  for  a  more  equal  assessment  of  property  in  each  State.  A 
commission  of  a  certain  number  of  the  tax  collectors  from  the  various 
portions  of  each  State  should  be  appointed  to  meet  and  adjust  the 
rate  at  which  the  various  kinds  of  property  s'.ould  be  assessed. 

It  seems  to  me,  also,  that  the  entire  machinery  of  assessors  pro- 
vided by  the  last  act  can  be  dispensed  with  by  charging  the  duties  of 
the  assessors  on  the  district  collectors,  and  increasing  their  salaries. 
Exceptions  may  be  made  in  case  of  large  cities.  This  defect  in 
salaries  attaches  to  the  entire  arrangement  of  the  last  act.  It  is  not 
a  wise  policy  to  confide  large  money  arrangements  to  officers  who  are 
badly  paid.  The  patriotism  of  the  officers  induced  them,  daring  the 
last  year,  to  accept  the  offices  with  the  small  salaries  allowed.  But  it 
would  be  neither  wise  nor  just  to  ask  a  repetition  of  the  sacrifice. 

The  issuing  of  treasury  notes  and  the  transfer  of  them  to  the 
various  depositaries,  with  the  arrangements  at  those  depositories  for 
their  receipt,  custody  and  disposal,  have  grown  into  some  of  the  most 
important  functions  Q,f  this  Department.  The  engraving,  printing 
and  preparing  the  notes  involve  great  responsibilities  and  still  greater 
expense,  and  I  must  again  urge   upon   Congress   the  expediency  of 


16 

creating  for  lhi«  branch  a  separate  bureau.  The  necessities  of  tho 
times  compelled  a  transfer  of  the  printing  establishments  to  Columbia. 
It  seemed  a  belter  policy  to  encourage  priv;ite  competition  and  enter- 
prise, rather  than  undertake  to  carry  on  mechanical  work  by  the 
Government.  -The  cn;iraving  and  print  in;;,  together  with  the  manu- 
facture of  paper  have  all  been  done  by  contract.  Hut  the  handliug 
of  the  notes  after  they  are  printo<l,and  the  trimniinp:,  numbering  and 
signing  them  require  a  large  number  of  clork.s.  I  have  been  obliged 
greatly  to  increase  the  number  under  the  authority  of  the  act  of 
March  7.  IH6I,  and  the  whole  number  is  now  two  hundred  and  sixty- 
two,  of  whom  one  hundred  and  thirty-nine  are  ladle.**.  1  ventured 
upon  the  employment  of  the  latter,  under  the  belief  that  tlioy  would 
be  found  diligent  an«l  elFicient,  and  that  Congress  would  approve  the 
relief  which  was  thereby  extended  to  a  large  portion  of  the  most 
loyal,  sulTering  and  deserving  of  our  countrywomen.  In  arranging 
their  duties,  I  reduced  the  time  and  work  re(|uireil  below  the  rate  re- 
quired of  the  men,  and  made  i  proportionate  reduction  of  salary. 
The  jdan  has  been  found  to  work  well.  When  it  is  con.sidered  that 
this  very  large  branch  of  the  business  of  the  Treasury  is  without  an 
appropriate  head,  and  must  be  superintended  in  all  its  details  as  mat- 
ters now  htand  l»y  the  Secretary  himself,  it  will,  I  trust,  be  deemed 
reasonable  to  e.-^tablish  a  separate  bureau  for  its  administration.  I 
am  bound  by  a  sense  of  puldic  duty  again  to  say,  that  it  would  con- 
duce more  to  the  public  interest  to  dispense  with  most  of  this  agency, 
and  have  the  signatures  to  the  notes  engraved  and  printed.  E.xpe- 
rience  proves  that  any  signature  is  readdy  imitated — that  tho  signa- 
tures of  the  same  writers  vary  so  much  as  to  alTord  no  adequato 
guide,  and,  that  where  so  many  signers  are  eniployed,  it  is  impo.ssiljle 
to  infonn  the  community  eitlier  as  to  their  names  or  signatures.  Tho 
written  signatures,  therefore,  furnish  no  better  security  than  the 
engraved. 

T'  ■  and  doposite  of  treasury  notos,  and  tho  very  large  dis-^ 

bur  now  made  for  the  war  have  changed  the  entire  character 

of  tip.'  tri'afiuries  and  depositories.  Those  at  Rielimond,  Charleston, 
Montgonu'ry  aj»d  Jackson  have  become  large  banks,  and  the  number 
of  clerks,  and  the  salaries  of  both  officers  and  clerks  are  wholly  in- 
I  1  Tho    Assistant   Treasurer  at  Charleston   has  a   salary  of 

,^  and   the  clerks   at   each  office  are    limited  to  ijl,^!)!).      The 

teiier  iu  a  bank  receives  as  nnieh  for  his  salary  as  is  now  j)aid  to  the 
Assistant  Treasurer  at  Charleston.  That  officer  has,  for  some  time, 
desired  to  resign,  and  for  two  months  1  have  been  seeking,  without 
8ucecs.=  .  a  proper  successor.  I  have  also  been  unable  to  procure  com- 
petent clerks  at  the  salaries  ])rescribed,  and  have  been  obliged  to  add 
to  tho  sum.  Congress  may  judge  of  the  importance  of  these  offices 
when  they  arc  informed  that  five  or  six  millions  of  dollars  arc  fre- 
quently in  their  hands  on  deposite.  These  officers,  moreover,  arc 
made  responsible  for  the  acts  cf  tho  clerks  under  them,  a  liability 
which,  under  present  circumstances,  no  respon5il»le  party  is  willing  to 
take.     Tnless  these  difficulties  are  corrected,  it  will  be  difficult  to  re- 


17 

tain  the  present  incumbents,  and  almost  impossible  to  procure  proper 
successors. 

The  collection  of  the  produce  loan  together  with  the  purchase  of 
produce  iindei'»the  act  of  April  21,  1862,  has  been  prosecuted  with 
vigor.  The  total  amount  of  subscriptions  to  the  loan  valued  in  money 
is  about  twenty-five  mi  lions  of  dollars;  of  which  $7,G31,()4i,  have 
been  collected  at  an  expense  of  one-third  of  one  per  cent.  The  pur- 
chases of  cotton,  thus  far  reported  h^  ihf-  agents,  amount  to  Gi),;">ll7 
bales,  costing  $4,474,41)0.  These  purchases,  at  the  present  moment, 
have  probably  reached  250,0()()  bales,  including  those  of  v  hich  reports 
are  on  the  way.  In  order  to  dispose  of  the  cotton,  two  forms  of  cer- 
tificate have  been  devised.  By  one,  the  specific  parcel  of  cotton  is 
identified  and  disposed  of  By  the  other,  the  Government  obhgates 
itself  to  deliver  certain  quantities  at  certaia  points,  at  a  fixed  price. 
By  the  advice  of  our  Ministers  abroad,  some  of  the  latter  certificates, 
covering  ab  )ut  3i), (100  bales  of  cotton,  have  been  placed  as  an  experi- 
ment in  the  foreign  market;  but  sufficiei  t  dm e  has  not  elapsed  to 
hear  from  them.  The  details  of  this  br  inch  of  the  Department,  are 
set  forth  in  the  report  of  the* clerk  in  charge,  to  which  your  ittention 
is  invited.  Tht  important  and  responsible  duties  entrusted  to  this 
clerk,  render  it  proper  that  his  oflice  should  be  placed  on  a  level  with' 
other  branches  in  the  Department.  I  Avould,  therefore,  respectfully- 
recommend  that  the  office  be  raised  to  the  grade  of  a  chief  clerkship,. 

The  collated  returns  of  the  war  tax  have  not  been  completely  made- 
in  all  the  States.  The  report  of  the  chief  clerk  in  charge  of  this  Bu- 
reau, is  so  full  anddstinct  upon  the  several  points  to  which  attention 
is  due,  that  I  cannot  do  better  than  refer  you  ^o  a  copy  thereof,  wh'ch- 
is  herewith  presented.  The  question  that  has  arisen  between  the 
Governor  of  Tennessee  and  the  Department,  is  a  mere  question  of 
estimate,  but  is  it  involves  a  large  sum,  the  secretary  would  respect- 
fully ask  the  direction  of  Congress  as  to  some  propi  r  mode  of  adjust- 
ing the  difference.  The  liberal  manne'  in  which  the  State  has  acted 
under  the  circumstances,  may  induce  Congress  to  adopt  an  estimate 
which  the  Secretary  would  not  feel  himself  empowered  to  accep.. 

The  suspension  of  the  collection  in  several  parts  of  other  States  is 
also  submitted  specifically  to  the  attention  of  Congress,  in  order  that 
further  instructions  may  be  g  ven.  In  relation  to  the  State  of  South- 
Carolina,  it  should  be  remarked  that  the  Governor  has  directed  the 
tix  to  be  collected  by  the  State  tax  collectors,  wherever  practicable,, 
and  the  amount  to  be  pair  over  to  the  Confedeiate  Government. 

The  legislation  fhich  will  be  required  to  carry  into  effect  the  s<  veral' 
matters  recommended  in  this  report,  is  the  folfowing : 

1.  An  act  limiting  the  period  for  funding  the  treasury  notes,  bear- 
ing date  prior  to  1st  December,  1862. 

2.  Authority  to  is^-ue  a  sufficient  amount  of  treasury  notes,  to  pay 
the  appropriations  re(iuircd  for  the  supjort  of  the  Government  to  Ist 
July  nex'. 

3.  Authority  to  issue  bonds  and  stock  sufficient  to  fund  the  n  ites 
already  issued,  entitled  to  be  funded  at  eight  per  cent.  ;  and  those; 
hereafter  to  be  funded  at  seven  per  cent. 


18 

4.  A  call  upon  the  States  lo  ;^\itiranty  the  war  dubt,  upon  a  plan  to 
iusue  six  per  cent  bonds,  payable  in  instalments,  in  25  years,  upon 
the  plan  of  tiic  one  hundred  million  loan. 

5.  A  modification  <f  the  loan  act  of  April  IS63,  \fj  reducing  the 
time  to  five  years,  within  which  tho  Government  may  redeem  the 
bonds. 

6.  A  war  inx  upon  property  and  income. 

7.  The  api  ■  n  act. 

8.  The  org  '.  of  a  Bureau  in  charge  of  the  issue  of  treasury 
notes. 

9.  Increase  of  the  Falaries  of  the  assistant  Treasurers  and  Deposi- 
taric!<  and  their  clerks. 


All  "f  wliicb  i-  respectfully  submitted. 


C.  G.  MEMMINGER, 

ScTctary  of  the  Treasury. 


59 


ESTIMATES  OF  APFROPETATIONS  required  for  Vic  supjcrt  of 
the  Government,  for  the  period  from  February  \st,  to  June  30,  1863 
inclusive,  and  to  supply  d'fcicnmcs  arising  prior  thereto. 

LEGISLATIVE. 

For    compensation    and    mileage    of  members    and 

delegates  of  the  House  of  Reprcsentativcsi,  $n4,2:)0  0(1 

For  compensation  of    officers,  clerks   &c.,   of    the 

House  of  Representatives,  5,500  00 

For  contingent  cxpenscf  of  the  IIous(  of  Repre- 
sentatives, 10,000  09 

For  compensation  and  mileage  of  members  of  the 

Senate,  29,900  00 

For   CO  npensation   of   officers,  clerks  &c.,  of    the 

Senate,  6,000  00 

For  contingent  expenses  of  the  Senate,  6,000  03 

EXECUTIVE. 

For  compensation  of  the  President  of  the  Confed- 
erate States,  6,250  00 

For    compensation    of  the    Vice    President   of  the 

Confederate  States,  1,500  00 

For  compensation  of  the  Private  Secretary  and  Mes- 
senger of  the  President,  1,007   13 

For    JOD  pensation   of  the  Private  Secretary  of  the 

Vice  President,  714  40 

For  contingent  and  telegraphic  expenses  of  the  ex- 
ecutive office,  4,000  GO 

TREASURY    DEPARTMENT, 

For  compcLsation  of  the  Secretary  of  the  Treasury, 
assistant  Secretary,  Comptroller,  Auditors,  Trea- 
surer, and  Register,  and  Clerks  and  Messengers 
in  said  Department,  357,897   10 

For    incidental    and    coatingent   expenses    of    the 

Treasury  Department,  *       21,800  00 

For  interest  on  the  public  debt,  30,000,000  00 

For  engraving  and  printing  treasury  notes,  bonds 
and  certiicates  of  stock,  and  for  paper  for  the 
same,  •  350,000  00 

For  the  trans 'cf  of  funds  to  foreign  parts,  5,000,000  00 

For  the  purchase  of  coin,  4,(100,000  00 

For  the  transmusion  of  Confederte  States  funds,  200,000  00 


Amount  carried  forward,  $30,174,768  63 


20 
Amount  brought  forward,  $30,17  1,768  65 


WAR    DKtATlTMF.NT. 

For  compensation  of  the  SccrcUry  of  War,  assis- 
tant Secretary,  Chief  of  Hureau,  •Clerks,  Mes- 
iBonjrtTs  Ac,  kc,  in  said  Department,  118,638  2S 

Fc!  "1    and   contingent   expenses  of    War 

I  .  54,000  00 

yl  AIITEHMASTERS    DEPARTWENT. 

for  tho  pay  of  the  army,  119,2*0,771  OOf 

For  the  transportation  of  troops  and  their  bapgnge, 

of  quartermaster's  stores,  subsistence,  ordnance 

■nd  ordnance  stores,  from   place  of  purchase  to 

troops    in    the    field,  purchase  of  horses,   mules, 

wagons  and  harness,  pnrch»sc    of  lumber,  nails, 

iron  and  steel  for  erecting  store  houses,  quarters 

for  troops,  and  other  repairs,  hire  of  teamsters, 

laborers  &c.,  4  7,708,308  OOf 

For  pay  for  horses  of  non-commissioned  officers  and 

privates  killed  in  battle,  undor  act  No.  48,  stction 

7,  and  for  which  prm-ision  is  to  be  made,  125,01)0  Ol> 

For  pay  fir  property  pressed  into  the  service  of  the 

Coiifi'dcrate  States,  u»der  appraisement,  said  pro- 

j»erty  having  been  eitlier   lost  or  applied   to   the 

public  service,  187,500  00 

For  the  sustenance   of  jtrisonors   of  war,  under  act 

No.  181,  section  1,  aiid  the  hire  of  the  necessary 

prisons,  guard  houses,  &c.,  for  the   safe   keeping 

of  the  same,  or  so  much  thereof  as  may  be  neces- 

tary,  '  1,000,000  OO" 

For  tho  bounty  of  §50   to   each    non-coniniissioned 

ctrjccr,  musician  and   private  now  iu    the  service 

f(»r  three  yearn  or  for  the   war,  to  be   paid  at  the 

expiration  of  the  first  year's  service,  on  the  basis 

that  bixty  thousand  men  will  have  to  be  paid,  3,000,000,  00* 

For  pay   of  the  officers  on  <luty   in   the   offices   of 

Adjutant   and    Inspector   (icnerars   Department, 

tlie  'Juarterniaiiter  licneral's  Department,  medical, 

engineer,  ordinance  and  subsistence  Departments,  ^23,350  00 

For  pay  of  tho  provost  marshals  and  their  assist- 
ants, and  other  emplojees,  93,000  00 

COMMtSSARl'   nEPART»rENT. 

For  tho  purchase  of  subsistence  stores  and  commis- 
sary property,  48,656,500  00 


Amount  carried  forward,  $250,71  1,835  86 


21 
Amountbrouglit  fonvard,  $350,711,835  86 

ORDNANCE  DEPARTMENT. 

For  the  ordnance  service  in  all  its  brunclies,  12,500,000  00 

For  the  purchase  of  pig  and  rolled  iron,  S. 000, 000  00 

For  the  purchase  and  manufacture  of  nitre,  400,000  00 

ENGINEER  DEPARTMENT. 

For  the  engineer  service,  3,000,000  00 

MEDICAL  DEPARTMENT. 

For  pay  of  private  physicians  employed  by  contract,  1.50,000  {^0 

For  pay  of  nurses  and  cooks,  not  enlisted  or  volun- 
teers, 240,000  00 

For  pay  of  hospital  stewards,  60,000  00 

For   pay   of  matrons,  a.ssistant   matrons,  and    ward 

matrons,  240,000  OO 

For  pay  of  ward  masters,  150,000  00 

For  pay  of  hospital  laundresses,                             •  50,000  00 

For  medical  and  hospital  supplies,  2,500,000  00 

For  the  establishment  and  support  of  military  hos- 
pitals, 150,000  00 

NAVV   DEPARTMENT. 

For  compensation  of  the    Secretary   of  the   Navy, 

Clerks  and  Messenger,  16,523  SO 
For  incidental  and  contingent  expenses  of  the  Navy 

Department,  10,000  00 

For  pay  of  the  navy,  1,399,571  25 
For  provisions  and  contingencies  in  the  Payraaster's  • 

Department,  1,321,650  (lO 
For  iron-clads  and  other  war  steamers,  steam  en- 
gines, and  other  supplies  contracted  for  abroad,  8,000,000  00 
For  construction  of  iron-clad  and  other  vessels  in 

the  Confederate  States,  3,000,000  00 

For  ordnance  and  ordnance  stores,  1,817,500  00 
For  purchase   of  nautical   instruments,   books   an  I 

charts,  15,000  00 

For  equipment  and  repair 'of  ve^.scls,  250,000  00 
For  construction  of  a  rope-walk  and   purchase  of 

necessary  machinery,  2i)0,000  00 

For  fuel  for  steamers,  navy  yards  and  stations,  300,000  00 

For  contingent  enumerated,  250,0'M)  00 

For  surgeons'  necessaries,  100,0M()  00 

For  support  of  the  marine  corps,  268,627  00 


Am"ount  carried  forward,  $29<>,100,7oG  41 


2? 
Amount  brought  forward,  $2D0, 100,706   If 

KTATK   DEPARTMENT. 

For  compensation   of  SL-crctarj   of  State,   Clerks, 

M     >-•  Ti;»cr  a]i«l  LuMjcr,  5.353  0(^ 

Vur  {].:■  jiurchnse  of  diplomatic  books,  I,5(i0  00 

For  fwilaries  of  minkstcra,  commiasioncrs  and  secre- 
taries. 53,400  00 

F'«r  H.-ilurios  of  consuls  and  comincrcial  agents,  10,000  00 

V<  r    ■  1  and  contingent  expenses  of  fwrcign 

,•,'  ,  10,000  00 

For  necessities  and  exigencies  under  la\YS  already 
passed,  or  which  may  be  passed,  or  from  causes 
which  now  exist  or  may  hereafter  arise,  and  un- 
foreseen onicrgcncic!?,  subject  to  the  re<|uisition,  i 
and  under  tlic  control  of  the  President  of  the 
Confederate  States,                                                                100,000  00 

DKPARTMKNT  OF    JUSTICE. 

For  compensation  oC  the  Attorney   General,  Assis- 
tant Attorney    General,  (Morks  and    Messenger,  . 
including  pay  f>f  Messenger  prior  to  March  Dth,. 
1861,            *                                                                            6,006  85 

For  in^ i'lcntal  :ind  contingent  expenses  of  the  De- 
partment of  Justice,  1,250  OO 

For  tlie  purchase  of  a  law  library,  for  the  use  of  the 

Department  of  .lustice,  '  3,000  00 

For  the  salaries  of  Superintendent  of  Public  Print- 
ing, Clerk  and  Messenger,  2,062   51- 

For  compensation  of  governor  and  commissioner  of 
Indiiin  aff.iirs.  secretary,  jtidgcs,  attorney  and 
nnr.Oiil  of  Ari>:oii:i  territory,  4,510  00 

For  incidental  and  contingent  expenses  of  Arizona 
territory  to  be  cxpemled  by  the  Governor,  478  50 

•"or  printing,  binding  and  ruling  for  the  several 
Kxecutive  Dejjurtments,  75,000   00 

For  printing  and  binding  for  both  Houses  of  Con- 
gross,  including  the  printing  of  the  laws  and  jour- 
nals in  book  form.  25,000  00 

For  purchase  of  paper  for  the  Executive'  Depart- 
ments and  CongrcbS,  25,000  00 

For  salaries  of  judges,  attorneys  and  marshals,  and 

incidental  and  eojitingent  expenses  of  courts,  25,000  00 

For  compensiition  of  three  commissioners,  appointed 
under  the  sequestration  act,  and  for  clerk  hire 
and  contingent  expenses,  5,325  00 


Amount  carried  forward,  !$290,«423,592  24 


23 


Amount  brought  forward, 


POSTOFFICE  DEPARTMENT. 

For  compensation  of  the  Postmaster  General,  Chiefs 
of  Bureau,  Clerks,  Messengers,  Watchmen  and 
Laborers, 

For  incidental  and  contingent  expenses  of  the  Post- 
office  Department, 

MISCELLANEOUS. 

For  rent  of  Executive  buildings  and  President's 
house, 

Total,   ' 

RECAPITULATION. 

Legislative, 

Executive,  (salary  of  President,  &.c.,) 

Treasury  Department, 

War 

Navy  " 

State  '* 

Department  of  Justice, 

*Postoffice  Department, 

Miscellaneous, 


$290,423,592  26 

55,123  58 
5,000  00 

10,000  00 
$290,493,715  84 

$231,600  00 

13,471   53 

29,929,697   10 

242,079,067  23 

16,918,870  55 

150,253  00 

172,632  85 

60,123  58 

10,000  il'J 


Total, 


$290,493,715  84 


Indudd  in   t/ie  forego'ng  estimates  are  the  following,  for   deficients 

arising  prior  to  February  1,  1863,  to  wit : 
To  meet  the   increase  allowed  to  the  employees  of 

the  Navy  Department,  per  act  October  13,  1862. 
To  same  to  employees  in  the  PostofTice  Department, 
To  same  to  employees  in  the  War  Department, 
To  pay  of  Messenger  in  the  Attorney  Gcnerars  of- 
fice, prior  to  March  9,  1861, 
To  compensation  to   Private  Secretary  to  the  Vice 

President  from  October  13,  1S63  to  January  31, 

1863,  per  act  approved  October  13,  1862, 
To    compensation    of  Messenger  to  the   President 

from  October  13,  1862  to  January  31,  1863,  per 

act  approved  October  13,  1862, 


$973   15 

7,715  24 

21,888  23 

6  85 


303  51 


75  88 


$30,962  86 


ROBEPvT  TYLER, 

Jiegister  of  the  Treasury. 

Treasury  Department,  Register's  Office,  Jan.  7,  1863. 


Estimates  for  the  postal  service  not  yet  in. 


u 


Trkasirv  Dkpart.mknt.      ) 
War  Tax  Bureau,  Jan.  6th,  1863.  } 

Hon.  C.  Q.  MCMMINT.KR, 

Secretary  cf  the  Treasury: 

In  obedience  to  your  directions,  I  have  the  honor  to  submit  the  fol- 
lowing report  in  reference  to  tlie  opcration.s  and  results  of  the  war 
tax.  There  are  thirteen  Confederate  States  subject  to  the  tax,  but  all 
ftroccedings  in  relation  to  its  collection  in  the  States  of  Kentucky  and 
^!  niri.  for  obvious  reasons,  were  suspended  by  you,  and  the  sus- 
;  inn  was  afterwards  confirmed  by  act  of  Congress,  approved  April 
l;i.  \'^>'>1.  and  conpcqucntly,  no  collections  have  been  made  in  either 
of  tli'i-c  States.  Out  of  the  eleven  remaining  States,  the  Legislatures 
of  all  except  Mississippi  and  Texas,  have  assumed  the  tax. 

(►wing  to  circumstances  growing  out  of  a  state  of  war,  and  the  in- 
vasion and  occupancy  of  various  portions  of  the  Confederate  States 
l-y  the  jmblic  enemy,  the  operations  under  the  act  of  IDth  August, 
\>''\,  have  been  ver}'  much  retarded,  and  in  some  particular  sections 
it  his  been  entirely  impracticable  to  effect  the  necessary  organization 
<.f  officers  to  assess  property.  For  these  reasons,  it  is  impossible  to 
iiir.ke  a  full  and  satisfactory  report  of  the  true  results  of  the  present 
.system,  or  to  exhibit  the  aggregate  amount  and  value  of  property  in 
the  eleven  Confederate  States  and  the  tax  derivable  therefrom,  I  pro- 
pose, however,  to  give  as  accurate  a  report  of  the  oj^erations  under  tiio 
law  in  each  State,  as  the  materials  at  hand  will  admit,  to  which  will  be 
afipended  various  tables  showing  the  aggregate  amount  of  each  species 
of  property  taxed  in  each  of  tlie  States,  the  value  of  that  property 
and  the  amount  of  taxes  assc.-^sed  thereon.  Also  the  amounts  paid  l)y 
or  collected  in  each  Slate,  with  a  column  .showing  the  balance  due  or 
amount  overpaid.  The  States  will  be  notice  1  in  alphabetical  order, 
and  as  they  appear  in  the  annexed  table  **  A." 

1 .  Alabama. — For  this  State  a  chief  collector  was  duly  appointed  and 
roinmissioned,  but  before  he  had  completed  the  organization  of  sul)- 
'"  rs.  and  had  mad,'  the  necessary  distribution  of  forms  and  instruc- 
,  lluntsville,  the  place  of  his  residence,  was  captured  by  the 
enemy,  and  the  chief  collector,  as  he  repreoonts,  very  narrowly  escaped 
hiinpclf,  leaving  his  family  and  alL  his  papers  and  olTicial  documents 
within  the  lines  and  power  of  the  enemy.  And  being  thus  expelled 
'"i  I  his  home,  and  cut  olT  from  all  commnnication  with  his  family,  or 
'^s  to  his  office  and  paj)ers,  and  being  harrasscd  in  body  and  mind, 
lie  did  very  little  or  nothing  toward  the  further  prosecution  of  his 
duties,  and  consequently,  several  officers  who  had  been  appointed, 
resigned  or  refused  to  (|ualify,  others  failed  to  act  for  want  of  forms 
an«l  instructions,  and  the  whole  business  fell  into  confusion.  It  was 
supposed  that  the  work  was  regularly  progressing,  at  the  time  this 
sUite  of  facts  was  brought  to  the  knowleilge  of  the  Department,  when 
measTires  were  immediately  adopted  to  effect  a  re-organization  and  set 
the  machinery  again  in  motion.     "With  this  view  I  was  sent  to  Mont- 


25 

gomery  about  the  last  of  June,  and  after  conference  witli  tlie  Gov- 
ernor of  Alabama,  Mr.  Bradley  the  chief  collector,  was  induced  to 
resign,  and  Judge  Martin  was  appointed  his  successor.  The  State 
Legislature  had  some  time  before  that,  assumed  the  tax  and  advanced 
as  a  payment  $2,00(),(i0().  Many  of  the  collector's  offices  had  become 
vacant,  and  some  had  never  been'  filled  at  all.  There  was  then  no 
provision  for  the  compensation  of  collectors  where  the  tax  had  been 
assumed  by  the  State,  and  the  chief  collector  found  great  difficult}'  in 
procuring  the  services  of  competent  collectors,  and  the  result  was 
tardiness  and  delays  which  have  prevented  him  from  furnishing  as 
yet  a  collated  list  of  all  the  'assessments  in  the  State,%s hereby  the 
triTc  amount  of  tax  might  be  ascertained.  An  estimate  has,  however, 
been  made,  liberal  to  the  State,  in  deference  to  the  opinion  of  Gover- 
nor Shortpy,  by  which  the  tax  is  set  down  at  .§2,()l).\()()().  Deducting 
ten  per  cent,  from  this  amount,  the  nett  tax  will  be,  according  to  this 
estimate,  $1,81)0,000.  This  is,  however,  all  guess  work,  and  I  am 
inclined  to  the  opinion  that  if  the  property  of  the  State  is  faithfully 
assessed,  the  sum  paid  will  not  much  exceed,  if  anything,  the  nett 
amount  due.  At  any  rate  there  seems  to  be  no  necessity  for  legisla- 
tion until  the  full  returns  are  received. 

2.  Arkansas. — This  State  was  sub-divided  into  fifty-five  collection 
districts,  and  of  that  number  actuaj  returns  have  been  received  and 
reported  by  the  chief  collector  from  forty  districts,  leaving  fifteen  not 
yet  reported.  The  chief  collector  thinks  returns  will  be  received  from 
a  number  of  these,  but  others  being  occupied  by  the  enemy,  or  dis- 
turbed by  the  operations  of  war,  will  not  be  reported  at  all.  From 
the  returns  actually  received,  and  an  approximate  estimate  for  the 
remaining  districts,  the  whole  tax  of  the  State  will  be  $725,000,  and 
after  the  deducting  ten  per  cent.,  the  quota  of  the  State  will  be 
$652, .500.  Of  this  amount  $400,0!)0  has  been  paid,  leaving  a  balance 
of  $252,500.  The  invasion  of  the  State  and  interference  by  military 
operations,  have  prevented  the  chief  collector  from  completing  his 
collated  list.  I  do  not  know  that  the  Legislature  has  assumed  the 
tax,  having  no  official  notice  to  that  effect;  but  it  has  been  virtually 
assumed  by  the  Executive  in  tlie  payment  of  <^he  above  mentioned 
sum.  It  may  be  proper  to  state  that  this  sum  was  paid  to  General 
llindman's  Quartermaster.  The  payment  was  irregular,  but  the  error 
has  been  corrected,  by  a  requisition  at  your  request,  from  the  Secre- 
tary of  War  for  the  amount,  upon  which  a  draft  is  to  be  issued  in 
favor  of  said  quarteru.aster,  and  when  endorsed  by  him,  will  be  placed 
on  the  Treasurer's  books  to  the  credit  of  the  State  as  a  payment  on  the 
war  tax.  The  arrangement  has  not  been  completed,  and  for  this 
reason  the  credit  does  not  appear  on  the  Treasiirer's  books. 

3.  Flo7-ida. — Tn  this  State  the  operations  of  as.scssment  were  inter- 
rupted and  in  some  sections,  entirely  thwarted  by  the  enemy,  yet  the 
property  of  the  State  has  been  regularly  assessed  and  rcturneil,  except 
that  of  tlic  fourteenth  district,  composed  of  the  counties  of  Duval  and 
Clay,  and  of  the  fifteenth,  embracing  the  county  of  St.  John's.  Owing 
to  the  continued  occupation  of  these  counties  by  the  enemy,  no  returns 
from  them  are  anticipated,  so  the  full  amount  of  the  States  quota,  as 


2G 

takiii  from  the  chief  collectors  fin.nl  report,  is  §2.31  23;3  10.  ami  after 
(le<liicting  the  ten  per  cent,  the  nett  amount  of  tax  is  §2'2(),1'I9  8>».  of 
wliioh  has  been  paid  into  the  treasury  $225,374  1 1,  leaving  a  balance 
of  !^lSo  77. 

4.  Georgia. — All  the  districts  of  this  State  were  assessed  in  due 
(:  1  the  chief  collector's  collated  list  has  long  since  been  received. 

!  -t.  the  chief  collector  has  not  shown  the  number  of  acres  of 

I.:M  I.  ilic  number  of  slaves,  etc.,  but  merely  shows  the  aggregate  values 
of  ihe  dilTerent  species  of  property  in  each  district,  hence  I  have  not 
been  able  to  ascertain  the  average  values,  as  in  other  States. 

The  \rho|*amount  of  tax  assessed  is  §2,771,236  01.  The  nett  tax, 
after  deducting  ten  per  cent,  is  $2,11)1,112  41,  of  which  has  bjjcn 
ji:M-i   into  the  treasury  $2,177,218   18  leaving  a  balance  still  due  of 

§h,Nr»i  23. 

5.  Ijouisiana. — In, this  State  the  organization  was  pretty  well  com- 
pleted, and  assessments  were  progressing  satisfactorily,  when  the  fall 
of  New  Orleans  threw  matters  into  confusion,  and  rendered  it  neces- 
Hary  for  the  chief  collector,  who  re.si<led  there,  to  remove  with  his 
records  and  papers  to  a  safer  locality,  which  occasioned  considerable 
delay  in  the  progress  of  the  work.  Nevertheless,  with  great  energy 
and  perseverance,  Mr.  Luslicr,  the  chief  collector,  prosecuted  his  la- 
bors and  finally  succeeded  in  having  all  the  districts  assessed,  but  the 
interruptions  and  delays  to  which  he  has  been  subjected,  have  pre- 
vented him  from  forwarding  a  complete  collated  list.v  During  <he 
recent  session  of  Congress,  however,  ho  presented  a  statement  of 
actual  returns  from  nearly  all  the  districts,  and  for  the  few  remaining 
an  ap|)roximate  estimate,  based  upon  State  documents,  by  which  it 
V  '  u  that  the  liberal  advance  made  by  Governor  Moore,  of 
."•  in,  would  probably  over-pay  tlie  States  quota,  b;  $74,000, 
vliirii  uas  refuiideil  to  the  State's  agent,  by  authority  of  an  act  of 
Congress.  The  whole  matter  will  be  subject  to  adjustment  according 
to  the  true  amount  found  to  be  due  when  full  returns  of  assessment 
are  received  by  the  department. 

6.  North  (\nolinit. — NotwUhstanding  the  invasion  of  large  portions 
of  tiii."^  State,  anil  the  conse<|Ut'nt  destruction  and  deportation  of  pro- 
perty by  the  enemy,  the  organization   for  ascertaining  the  amount  of 
taxable  property,  was  perfected   with   commendable   dispatch,  and  all. 
tl.e  counti.'s   were   duly  assessed   ond  returned  at  an  early   period 
Before  the  true  amount  was  ascertaine<l,  the   State   advanced   $1,400 

•  •0»t.  The  whole  amount  of  nett  tax  was  afterwanls  shown  to  bo 
$1,2.S8,H2j  31,  which  was  over-pa;  ed  by  the  sum  of  $111,174  G!), 
which  was  refunded  to  the  State  by  act  of  Congress,  as  in  the  cave  of 
Louisiana.  So  this  constitutes  a  final  settlement  between  the  State 
and  the  Confederate  States. 

7.  South  Carohna. — .\11  the  districts  and  parishes  in  this  State  were 
in  like  manner  assessed,  but  several  parishes  contiguous  to  the  sea  and 
navlgal>le  waters  near  the  coast,  have  been  subjccte<l  to  the  invasion 
and  depredations  of  the  enemy.  For  this  reason.  Governor  Pickens 
claimed  exemption,  by  virtue  of  the  act  of  19th  April,  18G2,  for  the 
following  parishes,  to-Avit : — All  Saints,  Saint  George's  Winyaw,  Saint 


27 

Helena,  Saint  John's  Colleton,  Saint  AndrcAvs,  Saint  Luke's  and 
Saint  James'  Santee,  and  a  deduction  from  the  asaertained  quota  of 
the  State,  of  the  full  amount  of  taxes  assessed  in  these  parishes. 
After  a  prolorged  correspondence  Avith  the  Governor,  in  which  he  was 
urged  to  relinquish  his  demand  and  pay  up  the  full  quota,  he  declined 
and  insisted  upon  the  exemption,  and  as  the  taxbcokshad  been  turned 
over  to  the  State  authorities,  and  the  Confederate  collectors  had  been 
discharged,  there  was  no  other  alternative  left  than  to  acquiesce  in  his 
demand,  with  tho  understanding  'that  all  moneys  collected  in  these 
parishes  should  be  paid  over  to  the  Confederate  States.  The  whole 
amount  of  taxes  assessed' in  the  State,  after  deducting  ten  per  cent, 
is  $1,798,076  52.  There  has  been  paid  by  the  State  $1,651,525  55, 
leaving  a  balance  of  $146,5-17  97,  being  a  sum  less  than  the  amount 
of  assessments  in  the  exempted  parishes,  after  deducting  ten  per 
cent  therefrom.  The  sum  assessed  on  these  parishes  less  ten  per 
cent,  is  §151,995  60,  the  difference  against  the  Government  being 
$5,447  63.  It  is  for  Congress  to  determine  the  basis  of  final  settle- 
ment between  the  State  and  the  Confederate  States.  As  appropriate 
to  this  subject,  I  deem  it  proper  to  call  your  attention  to  the  following 
views  of  Joseph  D.  Pope,  Esq.,  chief  collector  for  that  State,  as  ex- 
pressed in  a  letter  to  your  address,  dated  the  1st  November  last.  Hi 
says: — "  My  individual  judgment  is  that  the  parishes  named  are  not 
in  such  condition  as  was  contemplated  by  the  exemption  act  of  Congress, 
but  the  terms  of  the  act  are  so  general  and  broad,  that  they  may  cover 
anything  that  the  President  of  the  Confederate  States  may  agree  to. 
It  seems  to  me,  if  I  understand  the  act,  that  unless  the  President 
agrees  that  these  parishes  shall  be  exempted,  that  the  State  must  pay. 
Many  of  the  people  of  Saint  Gaorge  and  All  Saints  can  pay,  and 
that  would  be  a  question  between  the  State  and  the  citizens.  The  ob 
ject  of  the  State  in  assuming  the  tax  at  all,  was  to  enable  her  to  ex- 
tend indulgence  to  those  of  her  citizens  who  could  not  pay.  For 
such  she  would  advance  the  moEey,  and  rely  upon  future  payment 
from  them.  This  is  as  it  should  be.  The  indulgence  should  come 
from  her  instead  of  the  Confederate  States."  In  these  views  I  fully 
concur,  and  would  further  add,  that  in  assuming  the  tax,  the  State 
took  the  jurisdiction  of  the  whole  matter  of  taxation  out  of  the  hands 
of  the  Government,  and  noAv  exercises  exclusive  control  over  it. 
.The  whole  tax  assessed  upon  the  citizens  was  assumed,  without  ex- 
ception or  distinction,  and  it  is  competent  for  Congress  to  remove  that 
suspension  which  its  own  exclusive  action  authorized  for  future  con- 
sideration, and  to  require  the  State  to  pay  her  full  quota  without 
abatement,  as  the  other  States  have  done. 

8.  Tennessee. — In  this  State  a  chief  collector  was  duly  appointed 
as  in  tlic -other  States,  but  the  appointee,  from  severe  illness,  was 
prevented  from  immediately  qualifying.  His  recovery  was  patiently 
awaited  for  some  time,  but  finally,  continued  indisposition  rciulered 
it  necessary  to  make  a  second  appointment.  This  all  produced  delay, 
and  before  the  second  appointee  could  qualify  and  district  the  State, 
and  appoint  sub-officers,  the  same  was  invaded,  the  capital  fell  into 
the  hands  of  the  enemy,  and  such  a  state  of  general   confusion  fol- 


t8 

lowed  as  to  render  it  utterly  impracticable  to  do  so,  and  all  further 
efforts  MTcrc  abaifdoncd.  The  legislature,  however,  passed  an  net  au- 
thorizing the  Governor  to  agree  with  the  authorities  of  the  Confed- 
erate States  upon  the  amount  to  be  paid  by  the  State  of  Tennessee  as 
her  quota  of  the  war  tax,  and  another  act  appropriating  $2,(MMi,(tOO 
for  that  purpose.  Every  possible  effort  has  been  made  through  the 
chief  collector,  to  obtain  reliable  data  for  estimating  the  amount  due, 
and  from  the  most  reliable  information  as  to  the  taxable  prrperty  of 
the  State,  derived  from  State  returns  and  other  sources,  the  dopart- 
menl  estimated  that  the  nctt  tax  would  exceed  the  sum  appropriated, 
by  over  §;2<t(i,(i(Mi.  The  amount  estimated  is  $2,-1  ")!l,()(Hi,  less  ten 
per  cent,  making  the  sum  of  S2,2(I5,()()I)  nctt  tax.  This  amount  was 
long  since  proposed  to  the  Governor.  The  Governor  proposes  a  sum 
BO  much  smaller  than  your  estimate,  to-wit :  about  $l,5iM), 000,  that 
it  is  not  likely  to  be  agreed  to.  It  will,  therefore,  devolve  upon  Con- 
gress and  the  legislature  of  Tennessee  to  settle  the  amount  to  be  paid, 
or  to  prescribe  sotne  mode  of  settlement.  The  Governor  has  paid  into 
the  treasury  $l,03i),t»6.')  25,  and  the  chief  collector.  Dr.  Ramsey, 
has  informed  you  that  the  Governor  has  ordered  an  additional  payment 
to-be  made  of  $1<)0,(K)0,  making  in  the  aggregate  $1,1J0,06'J   25. 

9.  Virginia. — There  are  in  this  State  one  hundred  and  forty-nine 
counties  and  cloven  cities,  constituting  as  many  collection  districts. 
Ninety-seven  counties  and  nine  cities,  have  been  assessed  and  returned, 
leaving  fifty-two  counties  and  two  cities,.  (Alexandria  and  Wheeling.) 
which  have  not  been  assessed  or  returned.  In  the  North  Western 
counties,  for  apparent  reasons,  no  attempt  has  been  made  to  appoint 
officers  or  to  procure  assessments.  In  other  counties  in  the  Eastern 
]  It  of  the  State,  where  the  people' arc  loyal  and  patriotic,  collectors 
M '  re  appointed  and  had  given  their  bonds,  but  before  the  assessors 
had  entered  upon  their  duties  the  invasion  of  the  enemy  arrested 
further  jirogress.  The  aggregate  amount  of  assessment  returcs  as 
phown  by  the  chief  collector's  final  report  is  <?;5  18.  !G  1,215  91.  The 
tax  on  this  at  1-2  per  cent  is  §2,7  10,«21  (>7,  and  tiie  nett  tax  after  de- 
ducting ten  percent.,  is  $2, 100,733  97.  The  amount  paid  by  the  State 
as  shown  by  the  Treasurers  books,  is  $2,125,0t)0,  leaving  a  balance 
of  §31 1 ,738  97.  For  the  information  of  Congress,  in  view  of  any  future 
legislation  in  reference  to  the  war  tax,  I  have  deemed  it  proper  to  pre- 
sent herewith  a  series  of  tables  preparel  by  Col.  II.  T.  (Jarnett,  the 
chief  collector,  as  well  as  to  give  a  condensed  statement  of  his  views 
and  suggestions  in  reference  to  the  mode  of  assessing  a  more  uniform 
value  of  certain  property  .which  I  beg  leave  to  commend  as  being  wise 
and  appr<»priate,  and  well  worthy  the  attentive  consideration  of  (,'on- 
gress.  The  copies  of  his  tables  here!o  annexed  are  numbered  from  1 
to  4.  Col.  Garnctt  refers  to  former  suggestions  made  by  him  in  ref- 
erence to  the  danger  of  rendering  the  ad  valorem  system  of  taxation, 
unjust,  unequal  and  oppressive,  and  proceeds  to  remark  upon  the 
impossibility,  from  divers  causes,  of  approximating  a  fair  distribution 
of  the  burdens  of  taxation  upon  the  principle  of  rating  all  property 
of  the  same  class,  &c.,  at  one  price  or  value.  That  climate,  soil  and 
Other  causes,  especially  affecting  slave  property  on  the  borders,  adja- 


.29 

cent  to  non-slaveholdiug  territory,  all  operate  to  depress  or  elevate 
values  to  suoli  a  degree  that  it  is  difficult  to  establish  a  just  rule  in 
the  application  of  one  price  to  all  the  same  class.  But  in  endeavoring 
to  avoid  this  by  giving  discretion  to  a  great  number  of  assessors  to  fix 
the  values  of  the  same  class  of  property  in  the  samcregion,  the  result 
sought  to  be  avoided  will  not  be  improved  by  producing  inequality  of 
tax  where  all  the  elements  which  determine  values  are  exactly  the 
same,  lie  then  illustrates,  by  referring  to  the  returns  of  assessors  in 
coterminous  counties,  where  climate,  soil,  &c.,  are  identical,  in  Avhicli  a 
marked  dffferenco  in  the  assessment  of  slaves  is  found  to  exist.  For 
instance,  the  county  of  Dinwiddle  contains  only  46  more  slaves  than 
the  county  of  Essex,  but  the  assessment  upon  the  slaves  of  Dinwiddie'is 
$521,975  more  than  that  of  Essex.  •  This  instance  he  regards  as  per- 
haps more  glaring  than  any  other  to  be  found  in  the  returns,  but  be- 
lieves as  a  general  rule  it  will  obtain  throughout.  The  assessors  hav- 
ing no  opportunities  of  consultation,  and  comparison  of  views, 'have 
produced  almost  as  many  variations  and  inequalities  in  their  assess- 
ments as  there  are  districts  in  the  State.  The  remedy  which  he  sug- 
gests is  that  Congress,  composed  as  it  is  of  representatives  from  all 
sections,  should  take  the  avera.ge  of  assessments  now  to  be  found  in 
the  returns  from  all  the  States,  and  either  agree  upon  that  as  a  uniform 
price  or  value  hereafter  to  control  the  assessors,  or  divide  the  Confed- 
eracy either  by  grand  divisions,  having  reference  to  soil,  climate  and 
productions,  and  vary  the  vate  to  suit  the  circumstances  of  each,  or 
adopt  a  uniform  value  in  each  state  to  govern  the  assessors  in  future. 

10.  The  only  ro«iiaining  States  to  be  considered  are  Texas  and  Mis- 
sissippi, and  as  has  been  stated,  the  only  States  in  which  the  war  tax  is 
being  collected  by  Confederate  officers,  all  the  others  having  assume<l^ 
the  tax.  In  Mississippi  all  the  districts  in  the  State  have  been  duly 
assessed  and  returned,  and  the  amount  of  tax  thus  assessed,  as 
shown  by  the  chief  collector's  collated  list,  in  the  whole  State,  is 
$2,24'),8I3  43,  and  of  this  amount  there  has  been  collected  and  paid 
ii*  the  Treasury  $2,052,304  96. 

Suspension  of  collections  has  only  been  asked  by  the  chief  collector 
in  one  instance,  that  of  the  county  of  Tishomingo  which  has  long  been 
in  the  possession  of  the  enemy.  Nevertheless,  since  asking  this  sus- 
pension the  collector  of  that  county  has  deposited  with  the  chief  col- 
lector about  $18,000. 

11.  Texas. — Collated  lists  of  property  rendered  for  assessment  of 
non-rendered  property,  and  property  of  alien  enemies  returned  by 
receivers  under  ihe  sequestration  laws,  have  been  received  from  the 
chief  collector,  which  show  an  aggregate  valuation  of  $318,214,621, 
the  tax  upon  which  is  $1,653,917  80,  the  tax  upon  unrcndercd  pro- 
perty being  rated  at  one  per  cent.  There  has  been  collected  and  paid 
into  the  Treasury  $1,21 1.918  21,  leaving  a  balance  of  $441,999   59. 

Some  months  ago  it  will  be  recollected  that  large  amounts  of  spuri- 
ous Treasury  notes  were  put  into  circulation,  and  in  the  State  of 
Texas,  it  is  reported  that  large  sums  were  paid  out  for  beef-cattle,  the 
consequence  of  which,  in  part,  has  been  that  several  district  collectora 
of  the  war  tax  have  come  into  possession  of  these  notes  in  the  prose- 


30* 

cation  of  their  collections,  nnd  not  knowing  from  vliom  the  notes 
were  received,  they  have  npjilicd  throiigli  the  chief  collector  to  the 
Department  for  relief.  The  chief  coUecror  has  been  informed  by  the 
Hon.  Secretary,  that  he  possessed  no  authority  to  allow  the  collectors 
credit  for  these  notes  in  the  settlement  of  th -ir  indehteilness  to  the 
Government.  Tho  result  will  be  that  they  >vill  be  roquircd  to  make 
all  such  sums  good,  unless  Congress  shouM  grant  them  relief. 

It  18  well  known  that  the  larger  denominations  of  these  spurious 
notes  were  so  skilfully  executed  that  ordinary  vigilance  could  not  de- 
ti  rt  thiin.  and  as  the  loss  thus  falling  upon  unsusjiccting  collectors, 
would  in  son»e  cases  not  only  deprive  thorn  of  their  salaries,  but  sub- 
ject them  to  serious  loss  l»esidos,  I  have  thought  proper  to  advert  to 
the  subject  as  one  w  hich  appeals  to  the  justice  and  liberality  of  Con- 
gress. If  an  act  for  their  relief  should  be  passed,  I  would  suggest  the 
propriety  of  retjuiring  from  eaeh  collector  claiming  its  benefit,  a  state- 
ment under  oath  as  to  the  manner  in  which  he  obtained  possession  of 
such  notes,  and  that  he  was  ignorant  that  the  same  were  not  genuine. 

liefore  closing  this  report  I  beg  leave  through  the  Hon.  Secretary. 
to  call  the  attention  of  Congress  to  the  following  suggestions.  And 
first,  as  to  the  necessity  of  additional  legislation  in  reference  to  the 
re<lemption  of  real  property  sold  for  taxes  umler  sec.  I'i,  act  19th 
August  18G1.  and  as  to  the  mode  and  manner  of  refunding  purchase 
money  after  the  lan<ls  have  been  redeemed.  Under  the  section  named 
the  owners,  their  heirs,  <fcc.,  shall  have  liberty  to  redeem  any  lands  and 
other  real  property  sold  for  taxes  within  tioo  yeirs  from  tho  timo  of 
sale,  upon  payment  to  the  collector,  for  the  use  of  ^lie  purchaser,  his 
heirs,  kv..  of  the  amount  paid  by  such  purchaser,  with  interest  for  the 
#«nie,  at  the  rate  of  twenty  per  centum  per  annum.  The  3d  proviso 
of  same  section,  provides  that  when  the  owner  shall  be  in  the  military 
service  he  shall  have  the  same  privilege  within  two  years  after  the  close 
of  his  term  of  service.  The  collector  of  the  district  in  which  tho  pro- 
perty is  sold,  is  the  oflicer  intrusted  with  the  execution  of  these  provi- 
sions, and  uinler  the  act  becomes  the  trustee  of  the  purchaser  to  t^c 
amount  of  purchase  money  received,  but  the  act  is  silent  as  to  what 
<lisposition  he  shall  make  of  it.  whether  he  shall  pay  it  over  to  the 
jiurchaser  himself,  or  to  the  chief  collector.  IJut  the  office  of  chief 
colb'ctor  miHt  expire  and  become  vacated  long  before  the  timo  of  re- 
dem|ition  will  expire.  When  the  chief  collector's  office  is  vacant  there 
is  no  oVc  tlesignated  to  receive  money  from  the  collector,  for  all 
his  transactifuis  must  be  through  tho  chief  collector.  Under  the  act 
all  the  official  dealings  of  the  department  are  confined  to  the  chief 
collector.  The  collectors  functions  will  also  expire  before  the  time 
of  redcmj>tioM,  and  in  that  event  there  will  be  no  officer  at  all  to  receive 
re<lem,-tion  money. 

It  is,  therefore,  obvious  that  Congress  should  make  provision  for 
these  emergencies,  and  designate  some  officer  to  whom  owners  may 
apply  for  the  redemption  of  their  property,  at  any  time  within  the 
period  allowed  by  law,  and  al?o  direct  what  disposition  such  officer  shall 
maki' of  such  funrts.  If  the  present  system  of  taxation  be  continued, 
then  the  new  officers  would  stand  in  place  of  the  old  and  continue 


31 

*  . 
their  duties.     It  would  seem  right  and  proper  to  authorize  the  trustee 

to  settL  with  the  owner  near  his  home,  without  compelling  him  to  go 

through   all  the   forms   and  delay   of  drawing  his   money  from  the 

treasury. 

Judge  Handy,  chief  collector  of  Mississippi,  represents  that  the 
collectors  of  that  State  have  almost  uniformly  presented,  for  his  ap- 
proval, accounts  for  postage  on  letters  and  tax  books  senn  to  him,  and 
for  express  c'.iarges  upon  assessment  and  receipt  books  ;  also,  accounts 
for  travelling  expenses  to  and  from  his  o'ffice,  to  make  their  payments 
as  re([uircd  by  instructions.  lie  properly  decided  that  the  present 
law  did  not  provide  for  the  allowance  of  such  incidental  expenses  to  the 
collectors.  lie  further  states  that  the  expense  of  travel  to  make 
deposits,  by  those  collectors  living  at  a  remote  distance,  has  been 
onerous,  and,  if  not  refunded  to  them,  will  render  the  real  compensa- 
tion very  unequal  to  that  of  those  residing  near  him.  It  would  seem 
to  me  just  and  proper  to  provide  for  the  payment  of  all  necessary 
postage  and  express  charges  for  the  transmission  of  tax  and  receipt 
books,  and  that  those  living  at  a  distance,  who  have  expended  large 
suras  travelling  to  make  their  deposits,  should  have  the  amount  re- 
funded to  them,  or  each  should  be  allowed  a  certain  amount  as  mileage 
to  defray  these  expenses.  The  same  reasons  will  apply  to  Texas, 
but  with  greater  force,  by  reason  of  the  greater  extent  of  her  territory. 

Owing  to  the  difficult}'',  and  sometimes  impossibility  of  getting 
suitable  persons  to  act  as  assessors,  in  certain  localities,  it  has  been 
necessary,  in  a»few  instances,  to  entrust  the  duties  of  assessment  to 
the  collector  himself;  and,  in  such  cases,  as  the  law  will  ailow  only 
the  compensation  of  one  office,  it  seems  to  me  that  provision  sl.ould 
be  made  authorizing  the  payment  of  hoth  the  compensation  of  col- 
lector as  well  as  that  of  assessor,  as  he  performs  the  duties  of  both. 

In  some  districts  in  States  that  have  assumed  the  war  tax,  no  col- 
lector has  been  appointed,  and  in  others  he  has  died  or  left  the  office 
vacant  by  going  into  the  military  service;  and  in  such  cases,  it  has 
been  found  necessary  to  appoint  what  are  termed  supervising  assessors. 
The  authority  for  this  is  derived  under  section  7,  of  the  supplemental 
act  of  19th  December,  1861.  These  have  performed  all  the  duties  of 
collector,  and  as  some  doubt  exists  as  to  the  luthority  to  pay  them  the 
compensation  of  collector,  it  would  be  well  to  provide  compensati  >n 
for  them  by  act  of  Congress. 

In  view  of  the  probable  legislation  of  Congress  in  reference  to  the 
war  tax  during  the  coming '  session,  it  will  not  be  inappropriate  to 
advert  briefly  to  the  ten  per  centum  allowed  by  the  act  of  19th  August, 
1861,  to  such  States  as  have  assumed  the  war  tax  assessed  upon  their 
citizens.  The  presumption  is  at  least  reasonable,  that  this  per  cent. 
w?»s  merely  intended  as  indemnity  to  cover  the  expense  the  States 
would  necessarily  incur,  in  collecting  the  tax  from  the  people,  and 
that  no  portion  of  it  was  grantecias  a  bonus  or  pecuniary  inducement 
to  the  States,  beyond  the  actual  expense  of  collection.  Nor  is  it  sup- 
posed that  the  object  of  any  State,  in  accepting  the  offer,  was  to 
speculate  and  make  money  out  of  the  Confederate  States,  but  rather 
to  protect  her  own  citizens  from  hardship  and  inconvenience,  by  ex- 


32 

tending  to  them  that  indulgence  iu  the  payment  of  their  taxes*  where 
necessary,  which  the  Confederate  States  could  not,  in  the  nature  of 
t'  "     '  it.     The  actual  results,  however,  in  the  States 

;  1  the  tax,  ami  in  which  'ho  same  has  heen  col- 

lected by  Confc<icrato  officers,  conclusively  show  that  the  per  cent, 
allowed  is  far  greater  than  was  necessary  to  cover  the  expense  of  collec- 
tion. In  the  State  of  Mississippi,  for  instance,  where  the  nctt  t;ix  is 
$2,2  4", 813,  the  actual  expense  of  collection,  as  shown  hy  the  aggre-' 
gaie  sum  of  the  sal.irio^  of  the  collectors  i^  less  than  §1  KDU  >.  The 
total  amount  n#ses:<cd  in  the  State's  which  have  assumed  the  tux  is 
$17. '•.37, 102,  out  of  which  $1,7(15,719  is  V'ductcd  as  the  tyi  per 
centum  on  that  amount,  to  which  adj  the  compensation  of  the  collec- 
tors in  those  States  of  §  100  each,  say  $220,000,  and  we  find  that  the 
average  expense  of  collection  in  the  States  that  have  assumed  is 
$2 1.1. '.Mis,  whilst,  in  the  State  of  Mississippi,  as  already  mentioned, 
where  the  tax  is  collected  hy  Confedente  officers,  the  whole  expense 
does  not  exceed  forty  thousand  dollars,  or  less  than  one-fifth  of  that 
in  the  other.  States. 

One  of  the  most  cherished  and  commendable  objects  of  Congress  in 
raising  revenue  to  carr}'  on  the  war,  has  been  to  absorb,  as  much  as 
possible,  the  great  redundance  of  circulating  currency  issued  in  con- 
sequence <jf  the  necessities  of  the  war,  but  the  policy  of  giving  the 
States  a  heavy  premium  to  assume  the  tax  of  their  citizens,  not  only 
involves  a  positive  loss  to  the  Government  of  considerably  over  one 
miUion  of  dollars,  but  seems  to  be  in  direct  conflict  injts  results,  with 
the  policy  of  rcdut-ing  the  amount  of  circulating  curren<.*y.  For  in 
some  of  the  States  that  have  assumed  the  tax  their  own  treasury  notes 
have  been  issued  eijual  in  amount  to  thut  assumed,  so  that  the  OiToct 
is  to  increase  rather  than  diminish  the  paper  currency  of  the  country. 
In  my  humble  juilgment  it  is  the  better  policy,  in  every  way,  for  tlie 
Government  to  c(jllect  its  own  taxes  from  the  people,  who  are  not  only 
willing,  but  able  to  y-.xy  them. 

I  would  respectfully  refer  to  the  present  method  of  settling  accounts 
for  expenses  of  collecting  the  tax,  as  one  involving  much  unnecessary 
delay  an<l  expense,  besides  j)rcventing  the  possibility  of  keeping  an 
accurate  account  of  the  settlement  and  suspensions.  IJy  the  .system 
now  in  use,  this  olllee  is  ojie  of  register  only,  the  accounts  passing 
for  sclilement  through  the  hands  of  the  Auditor  and  (\)mptroller, 
and  being  fileil  iil  the  office  of  the  Register,  without  any  information 
of  the  scttlejncnt  being  conveyed  to  this  office,  so  that  wo  are  abso- 
lutely ignorant  of  the  disposition  made,  or  to  be  made,  of  the  accounts 
as  they  j»ass  from  our  hands,  and  unable  to  supply  the  information 
which  is  daily  demanded  of  us,  without  oscillating  perpetually  iu  the 
other  offices.  In  adilition  to  this  a  large  amount  of  correspondence 
is  re(}uired  by  this  digressive  system,  and  much  superfluous  labor  ex- 
pended upon  its  prosecution  which  might  otherwise  be  avoided.  I 
"woujd,  therefore,  earnestly  urge  upon  the  Secretary,  the  importance 
of  having  a  ilitsbursing  clerk  appointed,  who  shall  be  bonded  for  tho 
faithful  pL-rformancc  of  his  duties,  and  shall  be  finally  accountable  to 
the  Aiilitor  f«>r  all  scitlcments.     This  would  ensure  iiLmcdiutc  action 


33 

upon  all  accounts,  and,  by  devoting  all  correspondence  with  regard  to 
the  expenditures  to  his  care,  would  enable  him,  comprehensively  and 
intelligently,  to  render  to  the  Department  a  clear  and  faithful  exhibit 
of  the  expenses  of  collection,  at  the  same  time  that  he  is  doing  justice 
to  the  respective  claimants  by  speedy  action  upon  their  accounts. 

In  conclusion,  I  beg  leave  to  recommend  the  suggestions  contained 
in  my  report  to  the  Secretary  dated  1st  August,  1862,  and  especially 
those  in  reference  to  the  compensation  of  collectors  in  any  future  act 
that  may  be  passed  :  that  is,  to  allow  them  a  given  per  cent,  on  such 
an  amount  collected,  and  a  diminished  per  cent,  on  all  sums  beyond 
such  amount,  thereby  offering  a  personal  inducement  for  a  close  and 
rigid  collection  of  all  the  taxes  assessed. 


Respectfully  submitted. 


T.  ALLAN, 
Chief  Clerk  of  War  Tax.. 


34 


COL.  GARNETT'S  TABLES  IN    REFERKNCB  TO  VIRGINIA. 

(Table  No.  1.) 

ExhiMting  toi:il  value  of  real  estate  and  personal  property  in  the 
State  of  Virginia,  in  the  year  186i».  The  total  value  in  the  districts 
now  a?«osRed  in  the  same  year,  and  the  total  amount  actually  assessed 
by  war  tax  assessors  in  18G1.  Also,  the  amount  remaining  unassessed, 
supnosed  to  be  caused  by  the  exceptions  of  the  war  tax  act,  such  as 
Coniederate  Bonds  and  estates  of  less  value  than  $500,  &c. 

Total  value  of  real  and  personal  property  in  the 

State  of  Virginia,  in  the  year  1860,  $931,261,305  GO 

Total  value  of  ditto  in  the  districts  now  assessed 

in  the  same  year,  1860,  772,121,746  00 

'Total  value  of  ditto  in  the  una,sses8ed  districts,         §162,139,539  00 
Total  value  as  above  of  assessed 

districts,  $772,121,746 

Total  war  tax  assessments,  548,164,263 


Exemptions  by  war  tax  act,  $223,957,483 

(Signed,)  II.  T.  GARNETT, 

Chief  Collector  C.  S.  War  Tax  for  Fa. 


(Table  No.  2.) 

"Exhibiting  the  total  "valaes  of  real  and  personal  property  in  the 
districts  now  assessed  in  the  year  1860.  The  amount  actually 
assessed  by  war  tax  assessors  in  1861.  Total  of  the  tax  at  one-half 
of  one  per  cent. 

Total  value  of  real  and  personal  property  in  the 

assessed  districts  in  I860,  $772,121,746  00 

Total  value  of  ditto  actually  assessed  by  war  tax 

assessors  1861,  548,164,263  00 

Total  of  tax  at  half  of  one  per  cent.  $2,740,821  00 

(Signed,)  II.  T.  GARNETT, 

Chief  Collector  C.  S.  War  Tax  for  Va. 


55 


(Table  No.  3.) 

Exhibiting  total  value  of  real  and  personal  property  in  the  districts 
unassessed  in  the  year  1860.  The  total  estimated  amount  of  the  assess- 
ment under  the  war  tax  act  had  it  been  made,  being  in  exact  proportion  in 
these  as  the  actual  assessment  exhibits  in  the  assessed  districts.  Also 
the  tax  upon  this  estimate  at  one-half  of  one  per  cent. 

Total  value  of  real  and  personal  property  in  the 

districts  unassesscd  in  1860,  $162,139,559  00 

Total  estimated  value  had  assessment  been  made 

by  war  tax  assessors  in  1860,  115,239,743  00 

Total  tax  upon  this  estimate  at  half  of  one  per 

cent.  576,198  00 

(Signed,)  H.  T.  GARNETT, 

Chief  Collector  C.  S.  War  Tax  for  Va. 


(Table  No.  4)  ^ 

Exhibits  the  total  population  of  the  State  by  the  census  of  1860, 
total  population  of  the  districts  assessed  by  war  tax  assessors  1861, 
and  the  total  population  of  districts  not  assessed. 

Total  population,  white,  free  colored  and  slave,  in 

State  of  Virginia,  by  census  of  1860,  $1,595,814  00 

Total  in  districts  assessed  for  war  tax  1861,  1,201,331   00 


Total  in  districts  unassessed  for  war  tax  1861,  394,483  00 

(Signed,)  II.  T.  GARNETT, 

Chief  Collector  C.  S.    War  Tax  for   Va. 


s« 


Table    B. 

SlMWiDg  th«  tTerAga  valuei  of  carUin  kinds  of  property  as  assessed  and  returned  ia 
(he  aerer*!  8ui«s,  uodor  the  War  Tax  Act,  of  August  10,  1861. 


Baal  Mala 

■•««. 

Bef«M,  Cal- 

lie,  Ac. 

Oold 

WAtchM. 

PUnaa. 

PlMMirt 

1                 1 

1 

rior14*  .     

Qrrrglk  .....    ... 

4.M 

tt7.08 

S.5t 

7S.63 

187.86 

M.I1 

nur'Jli  CAToOna. . . 
South  rsroUoa... 

».45 
CM 

mm 

4n.Tf 

M.87 

• 

63.68 
70.80 

197.71 

• 

173.79 

T4.17 
79,64 

TesM 

10.1S 

61«.U 
8M 

10  B9 
S»BO 

76  84 
67.80 

817.&6 
188.07 

188.64 

VirfinU 

78.«8 

OcBcrml  AT«rac«, 

t^M  pr  Aer. 

IMIB-Mprcap 

tir.n 

t72.19 

•i$2.oa 

•S9.87 

Table    A.. 


KloridB   .... 


Loulslaoa* 

Mississippi  — 
North  Carolina 
South  Carolloa. 

Tenoeasee* 

•Texaat i  124,811,376  00 

Tlrglnla I  257,75S,S27  ISO 


Morohan-    jank  Stock. 


15,607,608  OOl    84,117,266  00;      746,698  00       408,687  00 
186,186,452  94  286,243,819  88    8,713.671  89  20,859,641  65 


162,(26,126  00 
97,637.424  00 
111,770,984  00 


227,176,794  00 
105,467,096  00 
184,693,640  00 


331,049  00 
3,736,743  60 


6,087,169  00 
39,911,139  84 


6,286,»7  00  464,311  00|  1,463,951  00|68,078,192  00 
60,i!67,2St  OO 
64,895,126  00 


3,641,109  00    7,217,892  00    8,303,404  00 
5,292,594  00  18,766,632  0 


160,428,722  94 1  9,883,446  .19114,176,380  00 


16,398,742  63iSl,776,286  63 


675,300  00 
6,137,176  64 


2,668,397  00 
4,611,524  00 
8,635,471  60 


982,881  00 
768,314  63 


291,496  00 
845,387  00 
117,014  00 


149,814  00 
1,061,480  60 


863,997  00 
684,240  00 
862,273  00 


S.1S2.659  061  8,508,083  681 


619,426  00 
898,979  60 


62.062  00 
668,164  60 


452,231  00 
268,878  00 
946,029  00 


79,817  00 
846,984  60 


798,470  00 
475,976  00 
620,636  00 


183,839  00 
748,766  43' 


896,974  00 
821,425  00 


Carriages.  !  "turned  by      Aggregate. 


274,42100        71,049  90     49, 
8,851,467  00  i}8,41 0,000  90  664, 


2.116,806  CO  481,424  00  «7, 
1 ,960,836  00 1  896,184  OOJ  286, 
1,577,849  00  1,036,318  00  899, 
490, 


1,841,021  00! '  303, 

2,188,884  25'  2,465,661  85!  54g 


,000,000 
,480,561 
,174,086 
,111,240 
,708,440 
,405,625 
,463,798 
,000,000 
,869,310 
,164,215 


2,000,000  00 

725,000  00 

§251,28.1 19 

c2,771,286  01 

OOi:  2,096,560  20 

Ool    2,240,813  41>4 

OOp  1,432,02812 

OOr  1,997,843  99 

OO  :  2,450,000  00 

00|:  1,519,816  65 

91  ;  2,740,82107 


1,1 


1,800,000  00 
652,500  0 


2,426,000  58 
2,240,813  41 
1,288,826  81 
^1,798,076  62 
2,205,000  00 
1,519.846  55 
2,466,733  97 


8,000,000  00 
400,000  00 
225,374 11 
2,477,218  IS 
2,426,000  00 
9,062,304  96 
1,288,825  81 
'1,661,628  66 
1,030,069  25 
1,211,918  21 
2,126,000  00 


a200,000  00  a  Overpaid  Estimate. 

252,50OO0l 

736  77,  §  Pouble  Tai  Included. 
16,894  28  t  Default  LUt. 

5s; 

ICQ  K,,fl  ..<  i  il  Including  tax  on  additional 
15.5,008  45 , .,         uncollected  return. 

146,547  97  ^  Double  Tax  Included. 

1,174,980  751 

807,428  34 '  t  See  remark  below. 

841,738  97     


*  No  assessment  returns  having  been  received  from  these  States,  their  aggregates  are  respectively  based  upon  estimates. 

c  After  deducting  for  errors,  as  appears  by  report  of  Chief  Collector. 

+  The  return  for  Texas  does  not  include  the  Tax  upon  Sequestered,  or  non-remlered  property,  which  will  yield  an  additional  estimated  revenue  of  S134.5 


37 


Treasury  Department, 

Produce  Loan  OJicc, 

January  9,  18G3 


\ 


Sir  : — In  o.bcdiencc  to  your  order,  I  have  the  honor  to  make  the 
following  report  of  the  operations  of  this  office,  during  the  past  year. 

The  whole  amount  of  subscriptions  to  the  produce  loan,  taken 
chiefly  in  the  year  1861,  by  Commissioners  in  the  several  States  ap- 
pointed by  you,  is  as  follows:  Cotton,  431,347  bales,  worth  at 
$50  per  bale,  $21,567,350;  cash,  $608,375  ;  miscellaneous,  $895,18'.); 
giving  a  total  of  $23,070,905.  To  this  may  be  added  new  sub- 
scriptions taken  during  the  past  year  of  upwards  of  $2,000,000, 
making  the  amount  of  the  entire  subscription  a  little  over  $25,000,009. 

To  collect  these  subscriptions  a  General  Agent  was  appointed  in 
each  of  the  States,  with  authority  to  appoint  as  many  sub-agents  as 
might  be  necessary  to  enable  him  to  perform  efficiently  the  duty  en- 
trusted to  him  and  at  the  same  time  afford  proper  facilities  to  the 
subscribers  in  making  payments.  These  agents,  in  most  cases,  have 
rendered  weekly  reports  of  their  transactions  to  this  office,  and  bonda 
have  been  promptly  furnished  to  them  by  tl)^  register  of  the  Treasury 
for  distribution  to  the  parties  concerned. 

Owing  to  the  fact,  that  the  market  for  cotton  has  been  very  limited, 
arising  from  the  blockade  of  our  ports  and  the  general  condition  of 
the  country,  the  amount  of  collections  has  not  been  so  large  as  was,  at 
first,  anticipated.  The  following  statement  embraces  the  results  gath- 
ered from  the  reports,  made  up  to  the  latest  period,  received  at  this 
office : 

STATEMENT. 

Amount  collected  in  Georgia,  $],898,950  00 

Alabama,  1,421,670  00 

**              South  Carolina,  886,05!)  00 

*«             Louisiana  and  Miss.,  259,864  00 

Florida,  170,650  00 

North  Carolina,  63,200  00 

Texas,  58,450  00 

*«              Virginia,  19,200  00 


Total,  $4,778,034  00 

Add  to  the  above  new  subscriptions  collected  by 

produce  loan  agents  in  South  Carolina,  2,854,010  00 

Grand  total,  $7,631,044  00 

The  above  amount  embraced  only  the  payment  of  cash  pubscrip- 
tions  and  the  proceeds  of  the  sale  of  produce,  consisting  principallv 
of  cotton.  In  addition  to  this,  so  far  as  the  reports  already  received 
from   the   agents    show,    about   5,000   bales,    estimated  to  be  worth 


38 

$25r>,00(l  have  been  purchased  by  the  Government,  for  bonds,  from 
aubscribers  to  the  loan.  Thi;*,  added  to  the  grand  total  above,  will  give 
$7.B82,OM  as  the  entire  amount  realized  up  to  this  time  from  sub- 
Bcriptions  to  the  produce  loan,  or  nearly  one- third  of  its  whole 
amount. 

The  cost  of  collecting  thc^e  8ub8cription.s  has  been  very  small, 
amounting  only  to  about  $19,001),  or  less  than  one-third  of  one 
per  cent. 

The  names  of  all  the  parties  making  the  above  payments  have  been 
appropriately  entered  in  alpliabetical  or»lcr  on  the  books  of  this  office. 

To  carry  into  effect  the  act  of  April  2 1st,  18G2,  the  produce  loan 
agents  and  other  special  agents  appointed  for  the  purpo.se,  have  been 
required  under  the  regulation.s  of  May  21st,  18G2,  issued  by  you.  a 
copy  of  ^Yhich  you  will  find  enclosed,  to  make  purchases  of  cotton  on 
plantations  and  in  warehouses  in  towns  and  at  railroad  stations.  This 
business  being  entirely  new,  some  delay  occurred  in  organizing  i^  sys- 
tem of  conducting  it  and  of  putting  the  necessary  machinery  into 
operation  and  of  preparing  the  proper  blanks  and  books  for  the  use  of 
the  dilTerent  agents,  and  of  this  office.  These  preliminary  difficulties 
having  been  overcome,  the  system  has  gone  fairly  into  operation,  and  so 
far,  appears  to  work  harmoniously,  securing  at  once,  responsibility  to 
the  Government  and  unity  of  action  among  the  several  agents. 
Monthly  reports  are  receded  at  this  office  from  the  general  agent  in 
each  State,  showing  the  amount  of  cotton  purchased  by  him  or  under 
his  direction  and 4^11  the  particulars  of  said  purchases.  These  rep<:)rt3 
with  their  accompanying  certificates  of  title,  are  carefully  examined, 
corrected  when  necessary,  digested  and  entered  under  proper  headings 
on  tlio  books  of  this  office,  involving  a  large  amount  of  tedious  labor. 

Ilie  following  statement  will  show  the  purchases  already  made  by 
the  several  agents,  up  to  the  date  of  their  last  reports: 

STATEMKNT. 

I'ur.hases  in  .Mississippi,          38.212  bales,  costing  $1,887,159   99 

"   Al:ih:ini:i,              21,5i5     ♦♦            "  l,735,Oy8  91 

♦'   Georgia,                 6,281      •'            "  499,172  88 

"       *'   South  Carolina.     2,410     "            "  252,790  27 

♦'       '•  Arkansas,         '     1,023     "           ♦♦  100,218  52 


Total,  .  G9,507  bales,  costing       $4,474,400  57 

Of  the  above  amount,  so  far  as  the  reports  of  agents  show, 
$40.1120  70  have  been  paid  in  cash,  and  the  remainder  in  bonds. 
No  reports  from  Louisiana,  Texas  and  Florida  have  yet  been  received 
and  no  reports  from  any  of  the  agents  for  the  month  of  December 
have  reachcil  this  office,  but  it  is  estimated  from  letters  received  that 
not  less  than  250,000  bales,  including  the  number  in  the  above  state- 
ment have,  up  to  this  time,  been  already  purchased  for  the  use  of  the 
Government. 

The  average  price  paid  on  the  purchases  reported,  is  about  131  cts. 
per  pound,  varying  in   diflerent    States,  the   average  being  lowest  in 


39 

Mississippi  and  Arkansas.     The  prices  to  be  paid  hereafter  will  be, 
without  doubt  considerably  higher. 

The  two  following  forms  of  cotton  certificates  have  been  issued,  one, 
proposing  to  deliver  the  cotton  to  the  holder  at  a  fixed  price  after  the 
declaration  of  peace,  and  the  other  authorizing  him,  at  an  agreed 
price,  to  export  the  cotton,  at  any  time,  from  the  Confederate  States 
to  any  neutral  port,  on  complying  with  the  requisitions  of  the  law. 
Certificates  of  the  former  class,  amounting  to  one  million  five  hundred 
thousand  dollars,  have  already  been  transmitted  to  the  depositary  of 
the  Confederate  States  at  Liverpool. 


40 


[Certificate  No.   1.] 

CONFEDERATE  STATES  OF  AMERICA. 

$1,000  Bond. 
Cotton  Ccrtificai:.  No. 

Tins  IS  TO  cKRTirv,  that  of  is  the  proprietor  of 

twenty  bales  of  cotton  of  10,000  lbs.  weight,  rating  New  Orleans 
middling  at  five  pence  sterling,  which  shall  bo  delivered  by  the  Gov- 
ernment of  the  Confederate  States  of  America  to  or  order, 
at  the  port  of  Charleston  or  Savannah,  Mobile  or  New  Orleans,  subject 
only  to  charges  for  compressing,  putting  on  board  ship,  and  existing 
Government  dues,  the  latter  not  exceeding  one-eighth  of  one  cent  per 
pound. 

The  cotton  will  be  delivered  as  soon  as  demanded  by  the  holder  of 
this  certificate,  upon  the  Government  receiving  thirty  days  notice  of 
such  demand.  The  demand  must  be  made  within  the  six  months  after 
the  declaration  of  peace  between  the  present  belligerents  in  America  ; 
in  default  of  a  demand  within  that  period,  this  certificate  may  be  dis- 
charged by  payment  of  one  thousand  dollars,  with  interest  at  the  rate 
of  six  per  cent,   per  annum,  from  the  date  of  issue  indorsed  hereon. 

This  certificate  will  confer  no  right  until  verified  and  indorsed  by 
the  Commissioner  of  the  Confederate  States  in  Great  Britain. 

In  testimony  whereof,  the  Register  of  the  Treasury  hath  hereunto 
affixed  his  name  and  the  seal  of  the  Treasury  Department,  at  Rich- 
mond, this  first  day  of  November,  18G2. 

__— ^—  ^ 

Register  of  'Treasury. 


41 


[Certificate  No.  2.] 

Here  enter  the  weight  of  the  bales  only,  and  their  marks : 
Bales  :  aggregate  weight  a  ^ 

State  of  County  of  Town,  or  Postoffice, 

The  undersigned  having  sold  to  the  Confederate  States  of  America, 
and  received  the  value  of  same  in  bonds,  the  bales  of  cotton, 

marked,  numbered  and  classed  as  in  the  margin,  which   are  now  de- 
posited at  hereby  agrees  to  take  due  care  of  said  cotton  whilst  on 
his  plantation,  and  to  deliver  the  same  at  his  own  expense,  at 
in  the  State  of  to  the  order  of  the  Secretary  of  the  Treasury, 
or  his  agents,  or  their  assigns. 

186 

The  undersigned,  as  agent  of  the  Government,  certifies  that  the 
within  cotton  has  been  examined  by  him  or  by  a  competent  judge,  and 
that  its  character  will  rank  according  to  the  commercial  scale  as 
and  also,  that  the  weights  and  marks  are  as  described — the  cotton 
being  in  good  merchantable  order,  and  safely  stored  in  a  covered 
building. 

The  undersigned  certifies  that  the  price  agreed  upon  is  a  fair  market 
price  at  the  present  time. 


CONFEDERATE  STATES  OF  AMERICA, 

Treasury    Department, 

186 

This  is  to  certify  that  the  within  and  above  described  cotton  has 
been  sold  to  and  delivery  is  hereby  ordered  to  be  made  to 

him,  or  his  order,  with  license  to  export  the  same  from  the  Confederate 
States  to  any  neutral  port,  on  complying  with  the  requisitions  of  ihe 
law. 

Given  under  my  hand  and  the  seal  of  the  Treasury  Department,  en 
the  year  and  day  above  mentioned. 


Secretary  of  Treasury. 
No  purchases  of  tobacco,  under  the  act  of  April  21st,  have  been  made 
until  very  recently,  for  the  reason  that  a  large  portion  of  the  fbbacco- 
planting  region  and  the  principal  points  where  it  is  deposited,  have  been 
either  invaded  or  have  been  under  constant  threat  of  invasion  by  the 
enemy.  A  beginning,  however,  has,  at  length,  been  made,  and  one 
hundred  and  twenty-eight  hogsheads,  costing  $38,970  17,  have  been 
purchased. 

I  am,  very  respectfully, 

A.  ROANE, 
Principal  Clerk  in  charge  of  Produce  Loan  Office. 
lion.  C.  G.  Memminger,  "i 

Secretary  of  the  Treasury. 


42 


Treasury  Department,  ) 
January  7,  1863.   )  • 

T\}  tlu  President  : 

Sir:  I  have  the  honor,  in  compliance  with  the  act  of  April  Oth, 
1862,  to  submit  herewith,  in  duplicate,  the  estimates  of  appropriations 
required  for  the  support  of  the  Government/during  the  period  from 
February  l?t  to  June  30th,  1863,  inclusive. 
1  am,  respectfully, 

Your  obedient  servant, 

C.   G.   MEMMINGER, 

Secretary  of  the  Treasury. 


43 


CONFEDERATE  STATES  OF  AMERICA,  ^ 

Executive  Department,  > 

Richmond,  Va.,  Dec.  31,  1862.      ) 

To  the  Honorabh  Secretary  of  the  Treasury  : 

Sir  :  I  have  the  honor  to  submit  the  following  estimate  of  the 
amount  needed  to  meet  the  expenditures  of  the  Executive  office,  from 
the  1st  February  to  the  30th  June,  1863,  inclusive: 

For  the  contingent  and  telegraphic  expenses  of  the  Executive  office, 
from  1st  February  to  3()th  June,   1863,  inclusive,  $4,000  00. 

Very  respectfully, 

Your  obedient  servant, 

BURTON  N.  HARRISON, 

Disbursing  Agent. 


Office  Secretary  C.  S.  Senate,  ) 
Richmond,  Dec.  12,  1862.      ] 

Hon.  C.  G.  Memminger, 

Secretary  of  the  Treasury  : 

Sir  :  In  compliance  with  the  act  of  Congress  **  relative  to  the  esti- 
mates of  the  several  heads  of  department,"  I  herewith  transmit  you  an 
estimate  of  the  expenses  of  the  Senate  of  the  Confederate  States, 
from  the  first  day  of  February  to  the  first  day  of  July  1863. 

For  pay  of  members  of  the  Senate,  $29,900  00 

"      "    "  officers      "    "       "  6,000  00 

"    contingent  expenses,  6,000  00 


$41,900  00 

I  am,  very  respectfully,  &c.,  &c. 

(Signed,)  JAMES  II.  NASH, 

Secretary  of  the  Senate, 

per  C.  T.  Bruen. 


44 


ESTIMATE  OF  EXPEXSKSnf  (he  Ifousc  of  Rcprcsentalivcs  of  the 
Conftdfraic  States,  J ro7n  February  \st  to  June  30//*,  18G3. 

For  pay  and  mileage  of  members  and  delegates,  $171, 200  00 

For  compeneation  of  officers   of  House   of  Representa- 
tives, ^  5,500  00 
For  incidental  and  contingent  expenses,                                  10,(100  00 

Total,  $189,700  00 


Respectfully  submitted, 

ROBERT  E.  DIXON, 
(Signed.)  by  Jas.  McDonald, 

Assistant  Clerk. 


ESTIMATE  OF  APPROPRIATIONS  required  by  the  Drpartment 
of  State  for  the  five  months,  ending  June  30iA,  18G3. 

For  salaries  of  ministers,  commissioners  and  secretaries,     $23, 100  00 
For  salaries  of  consuls  and  commercial  agents,  10,000  00 

For  incidental  and  contingent  expenses  of  foreign  inter- 
course, 10,000  00 
For  purchase  of  diplomatic  books,  1,500  00 
For  salaries  of  Secretary  of  State,  Assistant  Secretary, 

Clerks,  Messenger  and  Laborer,  5,353  00 

Forsecretscrvicc,  i.e.,  in  necessities  and  exigencies  under 
laws  already  passed,  or  wliich  may  be  passed,  or  from 
causes  which  now  exist,  or  may  hereafter  arise,  and 
unforeseen  emergencies,  siii)ject  to  the  requisition, 
and  under  the  control  of  the  President  of  the  Con- 
federate States,  100,000  00 


$150,253  00 


(Signed,)  J.  V.  BENJAMIN, 

Secretary  of  State. 


45 


CONFEDERATE  STATES  OF  AMERICA,  ^ 

Department  of  Justice,  > 

Richmond,  Dec.  13,  1862.      ) 

Hon.  C.  G.  Memminger, 

Secretary  of  the  Treasury  : 

Sir  :  I  have  the  honor  to  acknowledge  the  receipt  of  your  letter  of 
the  12th  instant,  and  in  compliance  therewith,  I  submit  the  following 
estimates  of  expenditures  for  this  Department  up  to,  and  including 
30th  June,  1863: 

1.  For  salaries  of  Attorney  General,  Assistant  Attor- 

ney General,  Clerks  and  Messenger,  S6,000  00 

2.  For  incidental  and  contingent  expenses,  1,250  00 

3.  For  salaries   of  Superintendent  of  Public  Printing, 

Clerk  and  Messenger,  2,062  50 

4.  For  printing,  binding  and  ruling  for  the  several  Exe- 

cutive Departments,  75,000  00 

5.  For  printing  and  binding  for  both  Houses  of  Congress , 

including  the  printing  of  the  laws  and  journals  in 

book  form,  25,000  00 

G.  For  the  purchase  of  paper  for  the  Executive  Depart- 
ments and  Congress,  25,000  00 

7.  For  salaries  of  judges  and  attorneys,  and  incidental 

and  contingent  expenses  of  courts,  25,000  00 

9.  For  salaries  of  governor  and  commissioner  of  Indian 
affairs,  secretary,  judges,  attorney  and  marshal  of 
Arizona  territory,  4,510  00 

9.  For   incidental  and  contingent  expenses  of  Arizona 

territory,  to  be  expended  by  the  governor,  478  50 

10.  For  payment  of  messenger,  prior  to  9th  March,  1861,  6  85 

$164,307  85 

I  am,  yery  respectfully,  &q., 

(Signed,)  T.  n.   WATTS, 

Attorney  General. 


46 


CONFEDERATE  STATES  OF  AMERICA,  ^ 

Departmknt  ok  JrsTicp,  > 

Richmond,  December  20,  1862.      ) 

Hon.  C.  G.  >iv:MMiNGK.Ti, 

Secretary  of  the  Treasury  : 

S,R-  In  compliance  with  your  request  of  the  19th  inst.,  addressed 
to  E  M  Garnett,  clerk  of  the  board  of  commissioners  under  tho 
sequestration  act,  I  submit  the  following  estimates  of  expenditures 
for  the  board  of  commissioners  up  to,  and  including  3l)th  June,  lSb3  : 
1.  For  salaries  of  commissioners,  of  their  clerk,  and  for 

incidental  and  contingent  expenses  of  the  board,  ^o,6Zb  UU 


I  am,  sir,  very  respectfully, 

Your  obedient  servant, 


T.  II.  WATTS, 

Attorney  General. 


CONFEDERATE  STATES  OF  AMERICA,  \ 

Dki'ariment  of  Justick,  > 

Richmond,  Dec.  27,  18G2.    ) 

lion.  C.  G.  Memmingf.r, 

Secretary  of  the  Treasury  : 

Sir  •  I  be--  leave  to  add  to  the  estimates  of  expenditures  for  my 
Department,  "contained  in  my  letter  of  i:Uh  instant,  a  sum  of  throo 
thousand  dollars,  for  the  purchase  of  a  law  library,  for  the  use  of  the 
Department  of  Justice,  ^^^^^^^  "^ 


Your  obedient  servant, 


T.  II.   WATTS, 
Attorney  General. 


47 


ESTIMATE    OF  APPROPRIATIONS,   under  the  control  of  the 
Treasury  Department,  required  from  February  \st  to  June  30,  lb63. 

For  the  purchase  of  coin,  $4,00(),()00  00 

For  the  payment  of  interest  on  the  public  debt,  20,000,000  00 

For  engraving    and   printing  treasury  notes,  bonds 

and  certificates  of  stock,  and  for  paper  for  the  same,  350,000  00 

For  the  transmission  of  Confederate  States  funds,  20o'oOO  00 

For  the  transfer  of  funds  to  foreign  parts,  5,000,'oo0  00 

For  compensation  of  Secretary  of  Treasury,  Assist- 
ant Secretary,  Comptroller,  Auditors,  Treasurer, 
and  Register,  and  Clerks,  and  Messengers  in  the 
treasury  department,  357  897  10 

For  incidental  and  contingent  expenses  of  the  trea- 
sury department,  21,800  00 

_|29^29,697JO 

_  Twenty- nine  million,   nine   hundred    and    twenty-nine   thousand, 
SIX  hundred  and  ninety-seven  dollars  and  ten  cents. 

(Signed,)  ^        C.  G.  MEMMINGER, 

Secretary  of  the  Treasury. 


I 


48 


ESTIMATE  OF  APPROPRIATION  required  for  compensation  of 
the  Secretary  of  the  Treamry,  Assist  mt  Secretary,  Comptroller,  Audi- 
tors, Treasurer  and  Register,  and  Clerks,  and  Messengers,  iti'fhe  Trea- 
sury dejMirtment,  for    fiir  month,  ending  June  30,  1863. 

For  compensDtion  of  SccreUry  of  the  Treasury,  $2,500  00 

For  Assistant  Secretary  of  the  Treasury,  1,250  00 

Two  clerks,  at  §1.75(1  per  annum,  1,158  33 

Three  clerks,  at  §1.500  per  annum,  1,875  00 
Two   superintendents  of  buildings,    at  $1,275,  and 

$975  per  annum,  ^37  50 

One  messenger,  at  §600  per  annum,  250  00 

One  watchman,  at  §900  per  annum,  375  00 

Comptroller,  at  $3,(100  per  annum,  1,250  00 

Chief  clerk  comptroller's  office,  at  $1,750  per  annum,  729   17 

Twenty  clerks,  at  $1,500  per  annum,  12,500  00 

One  messenger,  at  $750  per  annum,  312  50 

First  Auditor,  at  $3,000  per  annum,  1,250  00 

One  chief  clerk,  at  $1,750  per  annum,  729   17 

Forty-eighty  clerks,  at  $1,500  per  annum,  30,000  00 
One    messenger,    and   one   assistant   messenger,    at 

$750  and  $375  per  annum,  468  75 
Second  Auditor,  at  $3,000  per  annum,  1,25»)  00 
One  chief  clerk,  at  $1,750  per  annum,  729  17 
Forty  clerks,  at  $1,500  per  annum,  25,000  00 
Sixty  special  clerks  to  audit  claims  of  dci^oased  sol- 
diers, at  $4  per  day,  30,720  00 
One  messenger,  at  $750  per  annum,  312  50 
Treasurer,  at  $3,000  per  annum,  1,250  00 
One  chief  clerk,  at  $1,750  per  annum,  729  17 
One  hundred  and    twenty-two    clerks,  at  $1,500  per 

annum,  76,250  00 

Eighty-four  clerks  (ladies,)  at  $900  pe;-  annum,  31,500  00 
One  messenger,  at  $750  per  annum,                                      *        31'^  50 

One  assistant  messenger,  at  $  150  per  annum,  187  50 

Register,  ut  $3,000  per  annum,  1,250  00 

One  chief  clerk,  at  $1,750  per  annum,  729   17 

Forty-one  clerks,  at  $1,500  per  annum,  25,025  00 

Seventy-two  clerks  (ladies,)  at  $900  per  annum,  27,000  00 

One  messenger,  at  $750  per  annum,  312  50 
One   chief    clerk,  war    t;ix  bureau,    at    $1,750    per 

72Q    17 

annum,                                                                                  .  ''^^   *' 

Three  clerks,  at  $1,500  per  annum,  1,875  00 

Two  clerks  in  light-house  bureau,                                 •  1,250  00 

One  clerk  in  Columbia,  South  Carolina,  at  $1,200 

per  annum,  "* 


500  OQt 


Amount  carried  forward,  $283,397  10 


49 

Amount  brought  forward,  $283,397   10 

Five  clert  s  in  Columbia,  South  Carolina,  at  $1,000 

per  annum,  2,083  33 

One  clerk  (lady,)  in    Columbia,  South    Carolina,  at 

$600  per  annum,  250  GO 

Twenty  clerks  (ladies,)  in  Columbia,  South  Carolina, 

at  $500  per  annum,  4,166  67 

Deficiency  in  appropriation  for  compensation  of  Sec- 
retary of  Treasury,  Assistant  Secretary,  Comptrol- 
ler, Auditors,  Treasurer  and  Register,  and  clerks, 
and  messengers  in  the  treasury  department,  to 
January  31,  1863,  68,000  00 


$357,897  10 


Three  hundrel  and  fifty-seven  thousand,  eight  hundred  and  ninety- 
seven  dollars,  and  ten  cents. 

Respectfully  submitted  to  the  Secretary  of  the  Treasury, 

JOHN  M.  STROTHER, 
Dhbursing  Clerk,  Treasury  Department.. 
January  3,  1863. 


50 


ESTIMATE  OE  APPROVRIATION  required  for  Tncidentai  atid 
Continprnt  expenses  of  the  Treasury  Dejmrlmcnt,  for  Jive  months  ending 
June  3(1,  I8G3. 

Fuel  and  f^as,  ^.'jOO  per  month,  for  February,  March 

and  April.  1863,  SK500  00 

Postage  on  soldier's  claims  and  other  matters,  3,000  00 

Telcpniins,  1,500  00 

Servant  hire,  1,50U  00 

Wasliin-,  300  00 

Stationery,    including    Icdgcrp,    paper,    blanks,    en- 
velopes, ink,  pens,  «S:c.,  8,000  00 
Alterations  of  buildin«:9to  adapt  them  to  the  increase 

of  the  Treasury  Department, 
Coal  and  gas  f(ir  ( k-tober,  November,  December  and 

January,  not  paid  for,  2,000  00 

Deficiency  in  appropriation  for  incidental  and  con- 
tingent expenses  treasury  department,  up  to  Feb- 
ruary 1,  1863,  3,000  00 

$21,800  00 

Twenty-one  thousand  eight  hundred  dollars. 
Respectfully  submitted  to  the  Secretary  of  the  Treasury. 
(Signed,)  JOHN  M.  STROtllER, 

Disbursing  Ckr/c,  Treasury  Ikpartmcnt. 
January  2,  1863. 


51 


^^Y/af^I^^V^'ril  Y""  ^^i^ar^mc./  from  the  first  day  of  Fehuary, 
\iio 6,  to  the  thirtieth  day  of  June,   1863. 

For  pay,  transportation  and  other  allowances  of  the 

Quartermaster's  Department,  as  per  estimate  of 

Quartermaster  General,  (A.)  SI7I,707,927  00 

t  or  feubsistence  of  the  Army  as  per  estimate  of  Com- 

missary  Genera]  (B.)  48,656,500  00 

i^  01  expenses  of  Engineer  service,  as  per  estimate 

For  oJr^  '^  ^p^^°'''  ^"''^'"  ^^-^  3,000,000  00 

J^  or  Ordnance  Bureau,  as  per  estimate  of  Chief  of 

F.?mT' I'n^^-^  .        .  15,900,000  00 

i^oi  Medical  Department,  as  per  estimates  of  Sur- 
geon General, 

^°-  1^  (^0  2,650,000  00 

Fn.  !•■  V    ^    ^^    r.  .    ,     ,  890,000  00       3,540,000  00 

i^or  civil    expenditures  of  the  War  Department,  as 

per  estimate  of  the  Disbursing  Clerk,  (G.)  172,638  23 

^^*^^'  $242,977,065  23 


52 


(A.) 

Qlahtkkmaster  Genkral's  Okflce,  7 
RicbmonJ,  Dec.  13tb,  1862.      j 

Sir  :  I  have  the  honor  to  submit  herewith  an  estimate  of  the  amount 
that  will  be  rcijtiired  for  the  pay,  transportation,  and  other  allowances 
provided  through  this  department  for  the  army  for  Jive  months, 'from 
the  1st  of  February  to  the  31)th  June,  1^503,  viz, 


FiCLD    AND    StaKF. 

l*fty  for  200  Generals,  5  months, 
4<iO  Aids, 

Forafjo  for  Generals  and  A  ills'  horses. 
Tents  for  do.. 

Wagons  and  harness,  (2  to  each,) 
Horses  and  mules. 
Hire  of  teamsters, 
Fuel  for  Generals," 
Forage  for  horses  and  mules, 
Horee  shoes,  nails,  iron,.&c.. 
Stationery, 

103  Brigade  Quarter-Masters, 
100  Brigade  Commissaries, 
500  Chaplains, 


$301,000 

70,000 

96,000 

15,000 

1)0,000 

160,000 

80,000 

22.-100 

06,000 

8,000 

5,000 

132,030 

81,000 

200,000 

$1,356,430 


Pay  f 


I  Corps  Artillery,  as  Light  Artillery,  40  Companies. 

r  officers  and  men,  5  months,  360,120 

Mcc-iianics.  laborers  and  teamsters,  36,600 

Tents  for  oflicers  and  men,  10,336 

Forage,  271,200 

Fuel  for  oflicers  and  men,                                   •  31,184 

Horses  and  mules,                '  406, 100 

Gamp  and  garrison  equipage,  1,600 

Travelling  forges  complete,  16,000 

Horse  shoes,  nails,  iron,  &c.,  20,000 

Wagons  and  harness,  123,500 

Leather,  thread,  tools,  &c.,  for  repairing,  7,500 

Clothing  for  men,  &c.,  248,250 

Stationery  for  oflicers  and  straw  for  horses,  24,600 

Horse  medicines,  2,500 


$1,562,790 


53 


1     ReG1ME>T    CaVALRT,    5    MONTHS. 

Pay  for  oflBcers  and  men  and  40  cents  per  horse, 
Mechanics  and  hiborers, 
Tents  for  officers  and  men, 
Camp  and'garrison  equipage, 
Travelling  forges  complete, 
Horses,  mules,  wagons  and  harness, 
Stationery  for  officers. 
Horse  shoes,  nails,  iron,  steel,  &c.. 
Straw  for  bedding  for  men, 
Leather,  thread,  &c.,  repairing  harness, 
Forage  for  public  animals, 
Fuel  for  officers  and  men, 
Clothing  for  men, 
Horse  medicines, 


1   Regiment  of  I.tantry,  5  months. 
Pay  for  officers  and  men, 

**     "    Mechanics  and  laborers, 

•'     "    Tents  for  officers  and  men, 

**     "    Camp  and  garrison  equipage, 

**     "    Mules,  wagons  and  harness, 

<<     ti    Forage  for  animals, 

"     "    Shoes  for  horses  and  mules,  nails,  iron,  kc, 

*'     '*    Fuel  for  officers  and  men, 

**     '*    Clothing  for  men, 

♦'     *'    Stationery  for  officers, 

**     <•    Straw  for  soldiers  bedding. 


RECAPITULATION. 

Field  and  staff, 

8  corps  of  iirtillery,  equal  to  40  companies  each, 

78  regiments  cavalry, 

481  regiments  infantry, 


lOO.SlO 

10,950 
2,272 
l,fi00 
4,000 

23,075 
2,000 
3,500 
5, 47.5 
2,51)0 

60,420 
8,000 

45,812 
500 

$279,614 


$66,900 

ll,9o0 

2,160 

1,600 

23,075 

10,740 

2,500 

7,(;oo 

41,562 
2,000 
1  322 


$173,809 

1,356,480 
12,502.320 
21,809,892 
83,602,129 

$119,270,771 


To  which  add:  For  the  transportation  of  troops  and  their 
baggage  ;  of  Quartermasters,  subsistence,  ordnance 
and  ordnance  stores  from  the  place  of  purchase  to  troops 
in  the  field;  the  purchase  of  horses,  mules,  wagons  and 
harness;  the  purchase  of  lumber,  nails,  iron  and  steel, 
for  erecting  store-houses,  quarters  for  troops  and 
other  repairs  ;  hire  of  teamsters,  laborers,  &c.,  40  per 
cent,  on  the  above,  47,708,308 

Amount  carried  forward,  $166,979,079 


•       54 

• 

Amount  brought  forwanl,  Sl6G.979.079 

To  pay  for  hordes  of  non-corninissioned  oflGcers  and  pri- 
vatcB  killed  in  battle,  under  act  No.  48,  sec.  7  ;  and 
for  wliich  provision  is  to  be  made,  12j,00I) 

To  pay  for  property  prcspeil  into  the  service  of  th(i,Con- 
federate  States,  under  appraisement,  and  said  property 
having  been  either  lo.^t  or  applied  to  the  public  ser- 
vice, 187,500 

Kor  the  sustenance  of  prisoners  of  w.ir  under  act  No. 
181,  sec.  1  ;  and  the  hire  of  the  necessary  prisons, 
guard  houses,  kc,  for  the  safe  keeping  of  the  same, 
or  so  much  thereof  as  may  be  necessary,  1,000,000 

For  the  bounty  of  $50  to  each  non-commissioned  officer, 
musician  and  private  now  in  service  for  3  years  or 
for  the  war,  to  be  paid  at  the  expiration  of  the  first  years 
service,  on  the  basis  that  60,000  men  will  have  to  be 
paid,  3,000,000 

For  the  pay  of  the  officers  on  duty  in  the, offices  of  the 
Adjutant  and  Inspector  Generals  department,  the  i 
Quartermaster  Generals,  Medical,  Engineer,  Ordnance 
and  Subsistence  departments,  323,350 

For  the  pay  of  the  Provost-marshals  and  their  assis- 
tants and  other  employees,  93,000 


Total,  5  months,  $171,707,929 

A.  C.  MYERS, 
Quartermaster  General. 
Hon.  J.  A.  SfinnoN, 

Secretary  of  War^  Richmond,  Va. 


55 


AN  ESTIMATE  of  funds  for  the  subsistence  of  C.  S.  Array  from.  \st. 
January  to  SOfh  June^  1863, /or  475,000  men  (181  days)  making 
85,975,000  rations. 


85,975,000  rations  at  48  c.  per  ration,         ! 
1,000,000  gallons  molasses  at  38  c, 
1,000,000       "       whisky  at  $1.50, 
Purchase  of  weights,  scales  and  measures. 
Provisions  for  quartermaster,  employees  and 

laborers  under  charge  of  Engineer  and 

Nitre  bureaux, 


Add  10  percent,  for  wastage,  loss,  &c., 


Deduct  one-half  estimate  previously  made 
for  purchasing  wheat, 


:1, 268,000  00 
380,000  00 

1,500,000  00 
200,000  00 


5,000,000  00 

48,348,000  00 
4,834,800  00 

53,182,800  00 

3,412,900  00 


$49,769,900  00 
Deduct  amount  of  appropriations  for  pur- 
chase   of  sugar   and   molasses    already 
made  and  not  yet  drawn  upon,  1,113,400  00 


Total  amount  required. 


$48,656,500  00 


Cost  of  Ration  by  Estimate  Cost  of  100  Rations. 


RATION. 

ARTICLES. 

• 

QUANTITY 
OR    BULK. 

PRICE. 

AMOUNT. 

REMARKS. 

20 

Bacon, 

10  lbs. 

.40 

4  00 

Including  all  salt  meat 

80 

F.  Beef, 

80    «* 

.25 

20  00 

80 

Fiour^ 

120    " 

.10 

12  00 

20 

Meal, 

30    " 

.05 

1    50 

10 

Beans, 

6  gills. 

2.50  bus. 

06 

90 

Rice, 

9  lbs. 

.08 

72 

100 

Sugar, 

12    " 

.35 

4  20 

100 
100 

Vinegar, 
Candles, 

1  gal- 
Ulbs. 

.GO 
.60 

60 
90 

100 
100 

Soap, 
Salt, 

4    '* 

3qts. 

.75 

1.00) 
15.00  5 

3  00 
73 

I  By  con'racf  for  firit  iix  mot. 
'.  By  purchsie  balance  of  time,  $8 
(      Bvprage  price. 

48  71 

56 

The  contract  for  salt,  which  expires  io  March,  is  for  sevonty-fivo- 
cents  per  bushel.     But  it  is   received  wet   and  the  price  of  good  dry 
salt  is  probably  about  one  dollar  per  bushel. 

The  price  of  flour  in  the  trans-Mississippi  department  is  nearly 
double  wliat  will  be  the  cost  here.  By  estimating  flour  at  $20  per 
barrel,  it  is  believed  that  a  fair  average  will  be  arrived  at. 

At  the  last  session  §6,825,800  wa.^?  appropriated  for  purchasing 
wheat  to  run  through  the  whole  milling  season ;  hence,  one-half  of 
this  should  be  deducted  from  this  estimate  for  si.x  months. 

Whisky  and  molasses  are  extra  issues  and  not  included  in  the  cost 
of  the  ration. 

L.  B.  NORTHROP, 

Commissary  General. 


57 


(C.) 

CONFEDERATE  STATES  OF  AMERICA,  ^ 

AVar  Department,  > 

Engineer  Bureau,  Richmond,  December  11,  1863.  ) 

Hon.  James  A.  Seddon, 

Secretary  of  War: 

Sir  :  Enclosed  I  send  you  estimate  of  funds  required  by  the  Engi- 
neer Bureau,  from  1st  February,  18G3,  to  30th  June,  1863,  inclusive, 
amounting  to  $3,000,000  (three  million  dollars). 

Very  respectfully,  your  obedient  servant, 

J.  F.  GILMER, 
Colonel  and  Chief  of  Engineer  Bureau. 


ESTIMATE  OF  FUNDS  required  by  the  Engineer  Bureau  from  Isi 
February,  1863,  to  30th  June,  1863. 

For  five  months  expenditures  for  engineer  service,  $3,000,000 

J.  F.  GILMER, 
Colonel  and  Chief  of  Engineer  bureau. 


58 


(T>.) 

ESTIMATE  OF  FUNDS  required  fur  the  Service   of  the   Ordnance 
Bureau  for  the  Jiiye  months  ending  June  SOth,  18C3. 

For  the  "  Ordnance  Service  in  all  its  branches,"  viz : 

Purchase  of  supplies  of  ordnance  and 

ordnance  ptorcs  abroad,  $3,50(1,(1(10  00 

Purchagc  and  manufacture  of  field  ar- 

ti]ler3%  with  carria^^es,  harness,  am-  * 

munition  and  equipments,  complete,     1,000,000  00 
Purchase  and  fabrication  of  cannon, 

shot  and  shell,  500,000  00 

Purchase    and    fabrication    of    heavy 

carriages  for  cannon,  .100,(M(()  00 

Purcliase    and  fabrication   of   cavalry 

equipments,  500,000  GO 

Purchase  and  fabrication   of  infantry 

equipments,  1,000,000  00 

Service  of  the  arsenal  and  depots,  2,5(H),(K)0  00 

Purchase  and  fabrication  of  small  arms 

under  contract  and  otherwise,  G()0,000  00 

Debt  due   by  Major   Caleb   lluse,  in 

England,  '  2,000,000  00 

Purchase    of   lead  and  working   lead 

mines,  300,000  00 

Purchase  of  copper  and  other  minerals,        200,000  00 

•  12,500,000  00 

For  the  purchase   of  pig  and   rolled 

iron,  3,000,0000  00 

8,000,000  00 

For  the  purchase  and  manufacture  of 

nitre,  .J()0,()00  00 

400,000  00 


Total  amount  required,  $15,900,000  00 


J.   GORGAS, 
Colonel  and  Chief  of  Ordnance. 


Ordnance  Offick, 


Richmond,   December    1 1 


TICK,        ) 

,   18G2.  5 


59 


(E.) 

CONFEDERATE  STATES  OF  AMERICA,  j 

Surgeon  General's  Office,  > 

RicHJviOND,  Va.,  December  8,  1862.  ; 

ESTIMATE  No.   16. 

For  medical  and  hospital  supplies  from  February  1st, 

to  June  30tb,  1863,  $2,500,'"»00  00 

For  the  estal^lishment  and  support  of  military  hos- 
pitals from  February  1st,  to  June  30th,  1863,  150,000  00 


$2,650,000  00 


S.  P.  MOORE, 
Surgeon'  General, 


(F.) 

SURGEON  GENERAL'S  OFFICE,  ) 
Richmond,  December  8,  1862.      ) 

ESTIMATE  No.   17. 

For  the  pay  of  private  physicians  employed  by  con- 
tract from  February  1st,  to  June  30th,  1863,  $150,000  00 

For  the  pay  of  nurses  and  cooks,  not  enlisted  or  vol- 
unteers from  February  Ist,  to  June  3"th,  1863,  240,000  00 

For  the  pay  of  hospital  stewards  from  February  1st,  to 

June  30th,  1863,  -  60,000  00 

For  the  pay  of  matrons,  assistant  matrons,  and  ward 

matrons  from  February  1st,  to  June  30th,  1863,  240,000  00 

For  the  pay  of  ward  masters  from   February   Ist,  to 

June3nth,  1863,  .  150,000  00 

For  the  pay  of  hospital  laundresses,  from  February  Ist, 

to  June  30th,  1863,      .  50,000  00 

$890,000  00 


S.  r.  MOORE, 
Surgeon  General. 


60 


War  Department,  ) 

Riclimoiul,  December  8th,  1862.  $ 

Sir  : — I  have  the  honor  to  suhmit  the    following   eptimatcs  of  the 
deficiency,  as  well  as  the  amounts    necessary  to   be  appropriated  by 
Congress,  at  its  ensuing   session,  to   meet    the   current  civil  expendi- 
tures of  this  department  to  the  .'3(ith  of  June,  1863,  viz: 
For  compensation  of  the  Secretary  of  War,  Assistant 
Secretary,  Chief  (tf  Bureau,  Clerks,  Me^engcrs,  kc, 
from    October    13,    1862,    to    31st    January,    1863, 
^  (deficit,)  '  S2 1,888  23 

For  compensation  of  the  Secretary  of  War,  Assistant ' 
Secretary,  Chief  of  Bureau,  Clerks,  Messengers,  &c., 
from  February  1st.,  1863,  to  June  3(lth,  1863,  inclu- 
sive, 96,750  00 
For  incidental  and  contingent  expenses  of  the  War  De- 
partment from  February  1st  to  June  3Uth,  1863,             54,000  00 


Aggregate,  $172,638  %S 

In  explanation  of  the  first  item  in  the  foregoing  estimates,  I  have 
to  state,  tliat  while  Congress  made  the  ordinary  a[)propriation  for  the 
civil  expenditures  of  this  department,  to  the  31st  of  January,  1863, 
they  also  passed  an  act,  on  the  Saturday  night  preceding  the  termi- 
nation of  the  session  on  the  following  Monday,  and  which  was 
approved  October  13,  1862,  authorizing  a  stated  increase  on  the  com- 
pensations then  received  by  the  clerks  and  other  employees  engaged 
in  the  various  Legislative  and  Executive  Departments  of  the  Govern- 
ment, but  failed  to  make  the  necessary  additional  appropriation  to 
carry  out  this  act.  It  is  thus  that  the  deficit  of  $21,888  23  has 
occurred,  and  on  account  of  which,  I  have  thus  far,  been  without  the 
means  of  afl"ording  those  cmi)loyed  in,  this  dejiartment  the  practicable 
relief  contcuiplatcd  by  this  act.  Relying,  however,  upon  the  good 
faith  <>f  Congress  to  make  an  early  appropriation  to  meet  this  deficit, 
many  of  those  employed  in  this  department  have  incurred  subsequent 
liabilities  that  cannot  be  discharged  in  the  absence  of  such  an  a]»pro- 
priation,  and  if  it  meet  with  your  concurrence,  I  Avould  rcsj)ectfully 
suggest  that  the  early  attention  of  Congress  be  called  to  this  matter. 

Keferring  to  the  sum  of  ;§y6,750  t)0  named  as  the  second  item  in 
the  foregoing  estimates,  I  have  to  state  that  this  increasjd  ratio  of 
expense,  as  compared  with  my  former  estimates,  occurs  from  the  in- 
creased compensation  authori/.ed  by  Congress  to  be  paid  the  clerks 
and  other  employees  of  this  department  under  the  provisions  of  the 
act  referred  to  above,  and  from  the  employment,  by  your  predecessor 
in  office,  of  thirty  additional  clerks,  since  the  adjournment  of  Con- 
gress. These  additional  clerks  were  employed  under  the  aifthority  of 
the  Provisional  Congress,  as  recited  in  act  No.  53,  approved  March 
7th,  1861,   authorizing   the    Secretary  of  War   to   employ  as  miny 


61 

additional  clcrts  as  the  emergencies  of  his  department  shall,  from 
time  to  time,  require,  Thej,  therefore,  form  a  part  of  the  clerical 
organization  of  the  department,  and  have  been  estimated  for  accord- 
ingly, in  this  item. 

'In  regard  to  the  sudden  increase  that  presents  itself  in  the  third 
item  of  my  estimates  touching  the  incidental  and  contingent  exposes 
of  this  department  proper,  I  deem  it  pertinent  to  state  that  this 
increase  occurs  wholly  from  the  manner  in  which  the  postage  account 
between  the  department  and  Postoffice  in  Richmond  is  rendered.  The 
practice  has  been  uniform  in  regard  to  the  pre-payment  of  all  mater 
mailed  at  the  Postoffice  here,  but  under  a  recent  ruling  of  the  Post- 
master, all  letters  or  packages  for  this  department  received,  and  upon 
which  there  remains  any  unpaid  postage,  are  retained  in  his  office, 
uutil  the  amounts  due  are  paid  by  this  department.  Under  this  deci- 
sion, confusion  and  delay  have  sometimes  occurred  in  the  delivery  of 
the  mails  by  the  Postoffice  here  to  the  Department.  That  the  Post- 
master here  is  acting  under  the  law,  I  do  not  doubt,  but  that 
there  is  a  violation  of  the  postal  law  somewhere,  is  evident  from 
this  statement  of  its  administration.  "  Out  of  the  hundreds,  if  not 
thousands  of  letters  and  packages  daily  received  by  this  office,  as  well 
as  by  the  various  bureaux  of  the  department,  at  least  one-eighth  of 
them  reach  the  Postoffice  in  Richmon  1  without  having  been  fully  pre- 
paid at  the  mailing  office,  and  before  these  letters  or  packages  can  be 
secured  by  this  office,  or  any  of  the  bureaux  comprising  the  depart- 
ment, I  am  required  to  deposit  these  unpaid  amounts  in  postages.  The 
department,  through  me,  is  thus  improperly  constituted  the  disbursing 
ag?nt  for  every  officer  and  soldier  in  the  arra}^  as  well  as  for  every 
citizen  in  our  country,  who  has  any  correspondence  with  this  depart- 
ment or  its  bureaux,  (whether  of  an  official  or  merely  personal  char- 
acter) upon  which  full  pre-payment  has  been  omitted  at  the  mailing 
office.  It  is  thus  that  the  ordinary  incidental  and  contingent  expenses 
of  this  department  proper,  from  being  less  than  $80, 000  per  annum, 
has  suddenly  increased  to  an  amount  over  $120, ()()()  per  annum. 

I  have  thus  endeavored  to  give  you  an  intelligent  explanation  of 
the  cause  which  has  produced  the  marked  increase  in  my  present 
estimate  for  these  contingencies  of  the  department  proper,  with  the 
expression  of  the  hope  that  you  will  suggest  some  measure  which, 
while  not  interrupting  the  free  correspondence  between  the  depart- 
ment, the  army  and  the  people,  will  relieve  this  department  of  the 
Government  from  a  tax  incurred  by  persons  in  remote  sections  of  our 
country  and  the  payment  of  which  is  regarded  as  a  questionable 
diversion  of  the  fund  expressly  set  apart  by  Congress  to  meet  the 
interior  contingencies  of  the  department. 

I  have  the  honor  to  be, 

Your  ob't  serv't, 

(Signed,)         •  JAMES  E.  PEEBLES, 

Disbursing  Clerk  War  Drp't. 

Hon.  James  A.  Seddon,  Secretary  of  War,  Richmond,  Va. 


6t 


RECAPITULATION  OF  ESTIMATES  OF  NAVY  DEPARTMENT. 


(No.  1.) 


Estimate  of  amount  required  for  the  compeiipation  of 
the  Secretary  of  tlie  Navy,  Clerks  and  Messenger 
in  his  office,  from  the  let  of  Februarj  to  the  3Uth 
June,  1863,  S9,122  30 

(No.  2.) 

Estimate  of  the  amount  required  to  meet  the  increase 
of  pay  authorized  by  the  act  of  Congress,  approved 
October  I3th,  1862,  for  one  year,  ending  Oct.  13th, 
1862,  3,200  00 

(No.  3.) 

Estimate  of  the  amount  required  for  two  additional 
clerks,  and  a  draftsman  in  the  Navy  Department 
for  one  year,  4,200  00 

(No.  4.) 

•  Estimate  of  the  amount  required  for  tlie  incidental 
and  contingent  expenses  of  the  Navy  Department, 
from  iHt  of  February  to  the  3()th  of  June,  1863, 
inclusive,  10,000  GO 

(No.  5.) 

Estimate  of  amount  required  under  the  head  of  **  pay 

of  the  navy,"  to  June  3lith,  1863,  1,399,571   25 

(No.  6.) 

Estimate  of  the  amount  required  under  the  head  of 
"provision  ancr contingencies  in  raymastcr's  De- 
partment," to  Juno  30th,  1863,  1,321,650  GO 


(No.  7.) 

Estimate  of  amount  required  to  pay  **  for  iron-clad 
and  other  war  steamers,  steam  engines,  and  other 
supplies  contracted  for  abroad,"  8,000,000  00 


63 


(No.  8.) 

Estimate  of  amount  required  for  the  construction  of 
iron-clad  and  other  vessels  in  the  Confederate 
States,  3,000,000  00 

(No.  9.) 

Estimate  of  amount  required  under  the  head  of  "  ord- 
nance and  ordnance  stores,"  1,817,500  00 

(No.  10.) 

Estimate  of  amount  required  for  *' purchase  of  nau- 
tical instruments,  books  and  charts,"  15,000  00 

(No.  11.) 

Estimate    of  amount    required   under   the   head   of 

'*  equipments  and  repair  of  vessels,"  '  250,000  00 

(No.  12.) 

Estimate  of  amount  required  for  the  construction  of 

a  rope- walk,  &c.,  200,000  00 

(No.  13.) 

Estimate  of  amount  required  under  the  head  of  "fuel 

for  steamers,  navy  yards  and  stations,"  300,000  00 

(No.  14.) 

Estimate  of  amount  required  under  the  head  of  '*  con-  * 

tingent  enumerated,"  250,000  00 

(No.  15) 

Estimate  of  amount  required  unde#  head  of  ''  sur- 
geon's necessaries,  &c.,"*      »  100,000  00 

(No.  16.) 

Estimate  of  amount  required  **  for  the  support  of  the 

marine  corps,"  '  268,627  00 

Sixteen  million  nine  hundred  and  forty-eight  thou- 
sand eight  hundred  and  seventy  dollars  and  fifty- 
five  cents,  $16,948,870  55 

(Signed,)  S.  R.  MALLORY, 

Secretary  of  the  Navy. 
Navv  Department,  Dec.   16,  1862. 


64 


(No.  1.) 

ESTIMATE  OF  THE  AMOUNT  required  for  the  compensation  of 
th  Secretary  of  the  Navy,  CUrks  and  Mrssen^er  in  his  office,  from  the 
\st  of  February  to  the  30//i  of  June,  I.'^G.'},  inclusive. 

For  sain  r J  of  the  Secretary  of  the  Navy,  per  act  Feb.  21, 

1861.  $2,500  00 

For  palary  of  the  Chief  Clerk,  also   Corresponding  Clerk 

and  Disbursing  Agent,  per  act  March  S.  186 1,  875  00 

For  8:ilary  of  the  four  Clorks  on  duty  at  the  Navy  De- 
partment, attached  to  the  offices  of  Orders  and  Detail, 
Ordnance  and  Hydrography,  Provisions  and  Clothing, 
and  Medicine  and  Surgery,  per  act  March  16,  1861, 
(6th  section,)  at  $1,500  each  per  annum,  2,500  00 

For  salary  of  the   one  Clerk   at  $1,500  per  annum,  per 

act  January   11,  1862,  635  00 

For  salary  of  the  two  Clerks  at  $1,200  each  per  annum, 

per  act  March  8,  1861,  1,000  00 

For  salary  of  the  one  Clerk  at  $1,200  per  annum,  per  act 

January  14,   1862,  500  00 

Fo.-  salary  of  the  one  Clevk   at   $1,000  per  .annum,   per 

act  March  8,  1861,  -111   00 

For  salary  of  the  one  draftsman  at  $1,200  per  annum,  per 

act  January  14th,  1862,  500  00 

For  salary  of  the  one  Messenger  at  $500  per  annum,  per 

act  March  8,  1861,  208  30 

$n,122  30 

(No.  2.) 
t 
ESTIMATE  OF  THE  AMOUNT  reguiml  to  meet  the  increase  of 
pay  authitrizid  hy  the  act  of  Cons^ress,  enlithd  "  An  act  to  increase  the 
pay  (f  certain  officers  and  imployees  in  the  Executive  and  legislative 
Departments,"  approved  October  13,  1862, /or  one  year  ending  VMh  of 
October,  1863. 

Increase  to  five  ^rks,  at  salaries  of  $1,500  each,  $250 

each,  $1,250  00 

Increase  to   three   Clerks  and  one  Draftsman,  at  salaries 

of  $1,200  each,  $300  each,  1,200  00 

Increase  to  one  Clerk,  at  a  salary  of  $1,000,  $500,  50t)  00 

Increase  to  Messenger,  at  a  salary  of  $500,  $250,  250  00 

$3,200  00 


65 


•  (No.  3.) 

ESTIMATE  OF  THE  AMOUNT  required  for  two  additional  Clerks 
and  a  Draftsman  in  the  Navy  Department,  for  one  year. 

One  Clerk,  to  be  styled  "  Register,"  to  be  attached  to  the 

office  of  Orders  and  Detail,  $1,800  00 

One  Clerk  for  the  office  of  the  Secretary  of  the  Navy,  1,200  00 

One   Draftsman   for  the  office  of  Ordntnce  and  Hydro- 
graphy, 1,200  00 


$4,200  00 


Note. — This  amount,  if  authorized  by  law,  can  be  embraced  in  the 
amount  appropriated  for  "  compensation  of  the  Secretary  of  the  Navy,, 
Clerks  and  Messenger  in  his  office." 


(No.  4.) 

ESTIMATE  OF  AMOUNT  required  for  the  incidental  and  contingent 
expenses  of  the  Navy  Department,  from  tJie  \st  February  to  the  SOih  of 
June,  1863,  inclusive. 

For  stationery,  fuel,  lights,  postage,  telegrams,  labor,  &c.,  $10,000  00 


66 


(No.  5.) 

ESTIMATE    OF   AMOUNT  required 
Navi/;'  to  June  3iUh,  18G3. 


U7idcr   head   of   *' pay  of  the 


Fob  whom  Rkqvibei>. 

Vkablt  bate  or 
Pat,    (Avkr- 
aob.) 

Amount. 

AoanKQATB. 

4  Admirals 

f  0.000  00 
•l.StM)  (K) 
2.825  00 
2,225  m 
1,200  00 
050  00 
2,825  00 
1.100  00 
2,5(H)  00 
1,.500  00 
1.250  00 
8.(KK)  00 
2,200  00 

$12,000  00 
21.500  00 
43,7K7  50 

111,250  (M) 
16,000  00 
9,500  00 
10, 050  (K) 
22. (MX)  00 
27.6(K)  00 
11,250  00 
18.750  00 
1,500  00 
18,200  00 

10  r«ip(aint< 

31  Coniniandcrs, 

too  First   LieutcDanis 

56  Second  Liculcnantsi 

20  Mactcrs,  in  line  of  promotion, 

12  I'aymaelcrs 

40  As.'iiptnnI   Pavmastcrf 

15  Pashcd  Ahi^istiiut  iSurgeonB, 

30  Assistant  Surgeons, .' 

1  EnginctT-in-ciiief, 

12  Engineers, 

Tulal  fur  commist  oned  officer f, 

20  Pap^eJ  Milshiptnen 

$321,187  50 

850  00 
550  00 
1,250  m\ 
1,000  00 
750  tio 
1,000  00 
1.000  00 
1,000  00 
1,000  00 

8,.50O  (10 
2'.M.')0  00 
31.250  00 
75.000  00 
50,250  00 

5,000  00 
10.000  00 

3,000  00 
10,000  00 

100  Acting  Midsliipincn 

50  First  Assistant  Engineers, 

150  Second  AsgislJiut  Ei)j;iiioi>rs. 

10  lloatswjiins, 

0  Sail-inakcrs, 

$228,150  00 
720,000  00 
127.233  76 

5,000  live  thousand  seamen,  ordinary 
eeanien,    landsmen,    boys,    firemen 
and  coal  Leavers,  at  $l28S  pcraniiiMn. 

.\dd  for  coniingeiicies  arising,  and  not 
otherwise  to  be  estimated  for,    say 

Total   required    for    "pny  of  ilie 
navv,"    from    January    Ist   to 
June  aOth,  18(;3, 

$1,399,571  26 

JOHN  (lol)REK, 
Faymastir  in  charge. 

Office  of  Provision  and  Clothinc,  December,  1862. 

This  estimate  is  based  upon  the  number  of  oflicer.s  authorized  by 
act  of  Congress,  approved  April  21st,  l<sG2,  and  the  rate  of  pay 
establislicd  liy  that  act  and  act  No.  7(1,  of  Provisional  Congress, 
approved  Marcli  IG,  18G1.  The  number  of  seamen,  ordinary  seamen, 
.&c.,  authorized  by  diiTerent  acts  of  Congress  is  five  thousand. 


67 


(No.  6.) 

ESTI3IATE  OF  AMOUNT  required  under  head  of  Provision  and 
Contingencies  in  Paymaster  s  Department,  for  the  year  ending  on  the 
SiWi  day  of  June,  1863. 


FOR  WHAT  PURPOSE 
APPLIED. 


For  subsistence  of  five 
thousand  men,  for  six 
months,  at  one  ration 
per  day— 5000  X  181 
days, 

For  Contingencies  in 
Paymaster's  Depart- 
ment, for  printing 
Blanks,  Freight,  Rent, 
Cooperage,  Storage, 
Lights,  &c.,  &c., 

Add  for  Contingencies 
that  cannot  be  other- 
wise estimated  for,  say 
ten  per  cent. 


NO.    OF 
RATIONS 


905,000 


AVERAGE 
COST  OF 
RATIONS. 


Si   30 


AMOUNT. 


$1,176,500 


25,000 


120,150 


AGGREGATE. 


Total  required   for   provision    and   contingencies  in 
Paymaster's  Department, 


$1,321,650  00 


(Signed,) 

Office  of   Provision  and  Clothing, 
December,  1862. 


JOHN  deBREE, 
Paymaster  in  Charge. 


(No.  7.) 

ESTIMATE  OF  THE  AMOUNT  required  to  enable  the  Navy  De- 
partment to  comply  with  certain  Contracts  for  Iron-clad  War  S' earners. 
Steam  Engines,  and  other  Supplies  to  he  procured  abroad. 

To  pay  for  iron- clad  and  other   war   steamers,  steam 

engines,  and  other  supplies  contracted  for  abroad,     $8,000,000  00 

(No.  8.) 

ESTIMATE  OF    THE  AMOUNT  required  for  the   cjjnstruction   of 
Iron-clnd  and  other  vessels  in  the  Confederate  States,  to  June  30,  1863. 

For  the  construction  of  Iron-clad  an^  other  vessels,     $3,000,000  00 


I 


6a 


(No.  9.) 

ESTIMATE  OF  TllK  AMOUST  rcquind  under  the  head  of  Ordnance 
and  Ordnance  Stores^  to  June  30,  1863. 

For  cannon,  $200,000  00 

For  gun  carriages  and  ecjuipments,  200,000  00 

For  projectiles  of  all  kinds,  250,000  00 

For  laboratory  and  other  stores,  42,500  00 

For  powder  tanks,  25,000  00 

For  Bmall  arms,  100,000  00 

For  cannon  and  musket  powder,  150,000  00 

For  saltpetre,  75,000  00 

For  pay  of  mechanics  and  lahorera,  175,000  00 

For  purchase  of  iron  and  copper,  250,000  00 
For  cannon    foundry,  rolling   mills,  machine  shops, 

engines,  &c.,  300,000  00 
For  expenses   of  naval   powder   mills   at  Columbia, 
South  Carolina,  improvements,  repairs  and  expcn- 
ees  of  naval  ordnance  works    at  Charlotte,  North 
Carolina,  Atlanta  and  Savannah,  Georgia,  Charl<?S- 

ton,  South  Carolina,  and  Mobile,  Alabama,  30,000  00 


,817,500  00 


(Signed,)  GEORGE  MINOR, 

Chief  of  Ordnance  aiid  Ilydrographii. 

Office  of  Ordnancf:  and  IIvnnot;uAPnv, 
December  16,  1862, 


(No.  10.) 

ESTIMATE  OF  THE  AMOUNT  required  for  the  purchase  of  Nau^ 
tical  Instruments,  Hooks  and    Charts,  to  June  30,  1863,  inclusine. 

For  purchase  of  nautical  instruments  of  all  kinds,  $10,000  00 

For  purchase  of  nautical  books  and  charts,  5,000  00 

$15,000  00 


(Signed,)  GEORGE  MINOR, 

Chief  of  Ordnance  and  Hydrography. 

Office  of  Ordnance  and  HrcROGRAPiiy,  ) 
December  16,  1862.      S 


69 


'       (No.  11.) 

ESTIMATE  OF  THE  AMOUNT  required  under  fhc  head  of  Equip- 
mcnt  and  repair  of  Vtssels,  including  wear  and  tear,  to  June  30,  1863. 

For  the  equipment  and  repair  of  vessels,  $250,000  00 

(Signed,)  F.  FORREST, 

Chief  of  Buncu. 
Office  of  Orders  and  Detail,  ) 
December  16,  1862.      > 


(No.  12.) 

ESTIMATE  OF  AMOUNT  required  for  the  construction  of  a  Rope, 
^jfilk,  and  purchasing  the  necessary  machinery. 

For  building  rope  walk,  $200,000  GO 

(Signed,)  F.  FORREST, 

Chief  of  Bureau. 
Office  of  Orders  and  Detail,  ) 
December  16,  1862.      5 


(No.  13.) 

ESTIMATE  OF  THE  AMOUNT  reqidrcd   under   ike  head  of  Ft^A 
for  Steamers,  Navy  Yards  and  Stations,  to  June  30,  1863. 

For  fuel  for  steamers,  Navj  Yards,  and  Slations,  $300,000  00 

(Signed,)  F.  FORREST, 

Chief  of  Bureau. 
Office  of  Orders  and  Detail,  ) 
December  16,  1862.      "S 


(No.  14.) 

ESTIMATE  OF  AMOUNT  required   under  the   k.ad   of   Confin^erU 
Enumerated,  to  June  30,  1863,  for  the  following  purposes,  viz  : 

Freight   and    transportation,    printing    and   stationery,  advertising; 

models,  drawings,  repair  of  firo-cngines  and  hose,  and  attending  to 

steam  engines  in  yards  ;  purchase   and  maintenance  of  horpcf^  and 

oxen,  and  drawing  teams  ;  carts,  lumber,  wheels,  and  the  purchase 

'and  repair  of  workmens'  tools;  postage  on  public   letters;  fuel,  oil 


70 

and  candles  for  navy  yards  and  shore  stations  ;  pay  of  watchmen 
and  incidental  labor,  not  chargeable  to  other  appropriations  ;  wharf- 
age, dockage  and  rent ;  travelling  expenses  of  officers  and  others 
under  orders  ;  funeral  expenses,  store  and  office  rent ;  couimission 
and  jiay  of  navy  a^rents  and  clerks  ;  pay  of  store  keepers  and  clerks, 
flags,  awnings  aijil  packing-boxes;  books  fur  libraries  of  vessels; 
premiums  and  other  expenses  of  recruiting  ;  apprehending  deserters ; 
per  diem  pay  of  persons  attending  courts  martial,  courts  of  inquiry, 
and  other  services  authorized  by  law ;  pay  of  judge  advocate ; 
pilotage  and  tonnage  of  vessels,  and  assistance  to  vessels  in  distress  ; 
and  for  billS  of  health  and  quarantine  expenses,  $250,000  00 


(No.  15.)  © 

ESTIMATE  OF  THE  AMOUNT  required  for  Surgeons  necessaries 
and  appliances  for  sick  and  wounded  of  the  Navy^  including  Engineer 
and  Marine  Corps,  to  June  30,  18G3,  inclusive. 

For  medicines,  surgical  instruments  and    appliances, 

di-spensary  furniture,  bedding,  &,c.,  $100,000  00 

(Signed,)  11.  W.  JEFFERS, 

Surgeon  temporarily  in  charge. 


Office  of  Mkuicine  am>  Surgery, 
December  IG,  1862 


'•I 


(No.  IC.) 

ESTIMATE. OF  THE  AMOUNT  required  for  the  support  of  the 
Marine  Corps,  to  tlic  S'yHh  day  of  June,  1803,  {sec  DelaiUd  Statemenl 
herewith.) 

For  the  support  of  the  marine  corps,  $268,627  00 


71 


THERE  WILL  BE  REQUIRED  for  the  Quartermaster's  Depart- 
ment of  the  Cmjfedcrate  States  Marine  Cot ps,  for  six  months,  commenc- 
ing the  \st  of  January y  and  ending  the  SOth  of  June,  1863,  the  sum  of 

$184,425. 


For  clothing,  (see  next  page) 

For  provision,   "       **      " 

For  fuel,  "       "      " 

For  purchase  of  ordnance  stores,  flags,  drums,  fifes, 
and  repairs  of  arms. 

For  transportation  of  officers  and  troops,  and  expenses 
of  recruiting, 

For  quartermaster's  clerk, 

For  contingencies,  compensation  to  members  of  courts 
martial  and  witnesses,  rent  of  quarters,  offices  and 
store  rooms,  where  there  are  no  public  buildings, 
printing  blanks  and  advertising,  books  and  station- 
ery, postage  and  telegraphing,  apprehension  of 
deserters,  office  furniture,  straw,  bed- sacks,  axes, 
spades,  shovels,  brooms,  carpenter-tools,  burial  of 
deceased  marines,  office  messengers,  constant  labor. 


$32,217  50 

118,625  00 

7,982  50 

5,000  00 

12,500  00 
600  00 


7,500  00 
$184,425  00 


(Signed,)  A.  S.  TAYLOR, 

Major  and  Quartermaster,  Marine  Corps,  Confederate  Stoics. 


CLOTHING. 


FOR   WHOM    REQUIRED. 


Non-commissioned  officers,  musicians  and 
privates,  at  $108  87  to  each;  watch  coats 
$20  each 


$32,217  50 

PROVISIONS. 

FOR     WHOM    REQITIRED. 

ENLISTED 
MEN. 

RATIONS  AT 
|1     3(1  PKR  DAY. 

AMOnXT. 

Non-commissioned    officers,  mu- 
sicians and  privates, , 

500 

$118,625  00 

72 


FUEL. 


rOR    WHOM    RBQVIEBD. 


Commissioned  officers, 
Non-commissioned  officers 
musicians  and  privates, 


XIMIIKB. 

COEDS. 

TOTAL. 

60 

500 

550 

750 

1,300 

S7,982  *0 


Approved, 
(Signed,) 


LLOYD  J.  BE  ALL, 
Colonel  Commanding  Confederate  States  Marine  Corps. 


DETAILED  ESTIMATE  of  the  pay  of  Officers,  Non-Commissioncd 
Officers,  Musicians  and  Privates  of  the  Coifederate  States  Corps  of 
Marines^  from  January  \st,  to  June  30,  1SG3. 


No, 

For  whom  required. 

Pay  per 

month. 

Addl.  8  r 
vice,  paj 
at  $9  per 

Forage  for 
horaea  at 
$-^  each. 

ToUI. 

Undrawn  cloth- 
ing and  trar.  al- 
lowances to  dls- 

Aggre- 
gate. 

m^nth. 

charg'U  sold'ri. 

1  'Colonel— Commandant, 

$195 

$&4 

24 

$l,K8tt 

$1,688 

1  iLleuUnant  Colunel, 

170j                68 

24 

1,542 

1,512 

1  iMivJor, 

150                 6« 

24 

1,868 

1,868 

8  .raymaatcr,  AtUutantand  Quar 

termaster. 

4S« 

81 

79 

8,«84 

8,884 

10    CBptBins, 

l,*»l) 

90 

8,840 

8,340 

10    First  LlrutenanU, 

900 

6,4«)0 

5,400 

SO    Second  l,lcuttn8nt«. 

1,600 

9,600 

9.600 

2  'Sergeant     Mnjir    and    Quarter- 

I     iDUHter  Sfrjroint, 

M 

800 

800 

a    Principal  Muslc'.ans, 

60 

800 

800 

6    Kirit  SerxeanU, 

120 

720 

720 

S6  jherKfaiiU, 

525 

8,150 

8,150 

25  jCoiporaii, 

425 

2,550 

2,550 

10    Drummers  and  FIfer*. 

100 

060 

960 

4&0    PrlTHtia, 

6,750 

40,500 

2,600 

43,000 

8    Clerlci    to     Head(|uarteni     and 

Paymader, 

25a 

1,600 

1,600 

M7  1 

•  18,1811           $342 

144 

81,708 

2,600 

$S4,202 

Respectfully  submitted. 

(Signed,)  RICnARD  T.  ALLISON, 

Major  and  Paymaster^  Confederate  States  Marine  Corps. 


Approved, 


(Signed,)  LLOYD  J.  BEALL, 

Colonel  Commanding  Confederate  States  Marine  Corps, 


73 


Po8T  Office  Department,      ) 
Richmond,  Dec.  31,  1862.  ) 

Sir:  I  have  the  honor  to  submit  the  following  estimates  of  the 
receipts  and  expenditures  of  the  Post  Office  Department,  for  the  fiscal 
year  ending  June  30,  1863. 

RECEIPTS    AND    EXPENDITURES. 

The  expenditures  of  the  Department  for  the  month  of  June,  1861, 
amounted  to  $135,927  24,  as  follows: 

For  transportation  of  the  mails. 

For  compensation  of  postmasters, 

For  clerks  in  post  offices, 

For  ship,  steamboat  and  way  letters, 

For  advertising, 

For  mail  bags. 

For  office  furniture, 

For  blanks  and  printing, 

For  wrapping  paper, 

For  mail  locks,  keys  and  stamps, 

For  mail  depredations  and  special  agents. 

For  miscellaneous  payments, 

-Actual  expenditures,  $135,927  24 


MEANS. 

The  gross  revenues  of  the  month  amounted  to  $92,381  67,  as  fol- 
lows : 

Letter  postage,  $79,458  88 

Newspapers  and  pamphlets,  11,973   16 

Surplus   emoluments  from  box  rents,  953   13 

92,384,67 

Excess  of  expenditures  over  taeans  for 

June,  1861,  43,542  57 

Amount  of  appropriation  to  supply  de- 
ficiency in  the  revenues,  for  the  year 
ending  1st  March,  1862,  approved 
March,  16,  1862,  320,060  36 


$82,073 

64 

35,047 

20 

8,177 

10 

116 

66 

1,173 

91 

1 

75 

3,000  00 

4,732 

54 

73 

67 

669 

51 

861 

26 

Excess  of  means  $276,517  79 


The  expenditures  of  the  Department  for  the  year  which  ended  30th 

June,  1802,  amounted  to  $2,i)21,290  18,  viz: 

For  transportation  of  the  mails,  2,052,953  76 

For  ccmpensation  of  postmasters,  G7 1.727  67 

For  clerks  in  post  offices,  98,821    29 

For  ship,  stcamhoat  and  way  letters,  777  09 

For  advertising,  G.897  03 

For  mail  ba;T8,  714   77 

For  office  furniture,  81   81 

For  blanks  an. I  printing,  26,G02   68 

For  wrapping  paper,  4,854   91 

For  mail  locks,  keys  and  stamps,  689  40 
For  mail  depredations  and  special  agents,       20,206  50 

For  miscellaneous  payments,  17,112  07 

For  postage  stamps,  22,869   50 


Actual  expenditures,  $2,924,290  48 


MEANS. 

The  gross  revenues  for  the  year  whicli   ended  June  30tli,   1862, 
amounted  to  $1,91 1,189  05,  as  follows: 

Letter  postage,  $1,005,985  04 

Newspapers  and  pamphlets,  205,200  87 

Surplus  of  emoluments  from  box  rents,  7,935  2i) 

Postage  stamps,  692,067  94 

$1,911,189  05 

Excess  of  expenditures  over  revenues,  $1,013,101   43 

Deduct  excess  of  means  from  report 

for  month  of  June,  1861,  276,517  79 

Appropriation  to  supply  deficiency  in 
the  revenues  of  the  department,  ap- 
proved August  29,  1861,  500,000  00 

A[)j)ropriation  to  supply  deficiency 
in  tiic  revenues  of  the  department, 
approved  April  3,  1862,  1,451,602  31 

2,228,120   10 


Excess  of  means  to  30th  June,  1862,  $1,215,018  67 


75 


ESTIMATES  of  receipts  and  expenditures  for  the  year  ending  SOth  June, 
1863. 

EXPENDITURES. 

For  transportation  of  the  mails*,  2,493,389  86 

For  compensation  of  postmasters  671,727  67 

For  clerks  in  post  offices,  98,821   29 

For  ship,  steamboat  and  way  letters,  777  09 

For  advertising,  6,879  03 

For  mail  bags,  714  77          ^ 

For  office  furniture,  81   81 

For  blanks  and  printing,  30,000  00 

For  wrapping  paper  and  twine,  8,000  00 

For  mail  locks,  keys  and  stamps,  689  40 
For  mail  depredations  and  special  agents,      25,206'  50 

For  miscellaneous  payments,  17,112  07 

For  postage  stamps,  22,869  50 

Estimated  expenditures,  $3,376,268  99 

t 

MEANS. 

For  letter  postage,  $1,005,985  04 

For  newspapers  and  pamphlets,  205,200  87 

For  surplus  emoluments  tVom  box  rents  7,935  20 

For  postage  stamps,  692,067  94 

1,911,189  05 

Estimated  deficiency  of  revenues,  1,465,079  94 

Excess  of  means  for  year  ended  June 

30,  1862,  1,215,018  67 

Appropriation  to  supply  deficiency  for 

December,   1862,  appropriated  9th 

October,  1862,  130,607  39 

Appropriation  to  supply  deficiency  for 

January,  1863,  appropriated  October 

13,   18G2,  130,607  39 

1,476,233  45 


Surplus,  $n,153  54 

The  foregoing  estimates  are  based  upon  the  Auditors  report  of  the 
receipts  and  expenditures  of  this  department,  for  the  year  ending 
June  30th,  1862,  with  the  exceptions  that  the  increased  cost  of  print- 
ing, together  with  the  increased  cost  of  wrapping  paper  and  blanks,  ren- 
der it  necessary  that  the  sum  to  be  appropriated  for  these  separate 
heads  should  be  increased. 


:g 

I  therefore  reppectfully  request  that  the  sum  of  one  million,  nine 
hundred  ami  cloven  thousan<l,  one  huiidred  and  eighty-nine  dollars  and 
five  cents  (§1,911,189  05,)  be  appropriated  for  the  post  office  depart- 
ment, for  the  year  ending  June  3U,  l.sGS,  out  of  any  monies  in  the 
Treasury,  arising  from  the  revenues  of  the  post  office  department,  and 
that  the  further  sura  of  two  hundred  ami  seventy-six  thou  and,  three 
hundred  and  fifty-five  dollars  and  twenty-three  cents  ($276,355  23,) 
he  appropriated  out  of  the  current  revenues  of  the  department,  for  the 
year  which  ended  June  3(ith,  18G2.  This  latter  appropriation  is 
necessary  to  close  the  accounts  of  the  department  for  that  year,  the 
Congress  having  failed,  probably  by  inadvertence,  to  appropriate  a 
portion  of  the  current  revenues  of  the  department  for  that  year,  as 
requested  in  my  estimates. 

From  this  it  will  be  seen  that  no  further  firants  from  the  general 
treasury  are  required  for  the  current  fiscalyear,  ending  June  3l^th,1863. 
And  it  is  estimated  that  at  that  date  there  will  remain  in  the  treasury  to 
the  credit  of  this  department,  the  sum  of  eleven  thousand,  one  hun- 
dred and  fifty-three  dollars  and  fifty  one  cents,  ($11,153  51,)  of  the 
grants  heretofore  made  from  the  General  Treasury,  in  aid  of  the  rev- 
enues of  this  department. 

The  act  of  the  19th  of  April  last,  establishing  a  universal  rate  of 
lettfr  postage,  often  cents,  from  and  after  the  first  day  of  July  last, 
and  the  act  approved  the  twenty-first  day  of  April  last,  reducing  the 
rates  of  commissions  to  be  allowed  to  postmasters,  from  and  after  the 
first  day  of  July  last,  have  not  been  in  force  a  sufficient  length  of  time 
to  enable  me  to  determine  the  effect  they  arc  to  produce  on  the  revenues 
of  the  department,  as  the  accounts  in  the  current  course  of  business  in 
the  Auditor's  office  have  only  been  settled  up  to  the  ihirticth  of  June 
last.  ]>ut  I  have  no  doubt,  judging  from  such  unofficial  information 
as  I  have  received,  that  they  will  produce  an  increase  of  revenue,  though 
1  have  no  information  of  a  character  which  would  authorize  a  change 
of  the  above  estimates. 

The  report  of  the  First  Auditor  has  not  yet  been  received  of  the  cur- 
rent receipts  and  expenditures,  on  account  of  the  constructing,  repair- 
ing, and  operating  tlie  military  telegraph  lines.  As  soon  as  it  is  receiv- 
ed, which  will  probably  be  in  a  day  or  two,  1  will  send  the  esfiinatcs  for 
that  branch  of  the  service. 

I  have  the  honor  to  be,  very  respectfully. 

Your  obedient  servant, 

JOllX  II.  REAGAN, 

Posfvvistcr  General. 
Thf.  President. 


77 


PosTOFFicE  Department,  > 

January  8th,  1863.  \ 

Sir  : — I  have  the  honor  herewith  to  submit  a  statement  of  the 
amount  of  receipts  and  expenditures,  on  account  of  military  telegraph 
lines,  from  June  1st,  1861,  to  September  1st,  1862,  together  with  an 
estimate  of  the  amount  required  for  constructing,  repairing  and  oper- 
ating military  telegraph  lines  to  June  30th,  1863. 

EXPENDITURES. 

Amount  expended  for  constructing  and  repairing  from 

June  1st,  1861,-  to  September  1st,  1862,  ^53,034  97 

Amount  paid  salaries  to  superintendent,  operators  and 

watchmen,  11,783  34 

Amount  paid  operators  out  of  receipts,  1,328  2  5 

Amount  paid  for  incidental  expenses,  275  71 

Making, 

RECEIPTS. 

By  amount  appropriated  under  act  approved  May  21st, 

1861, 
By  amount  appropriated  December  24th,  1861, 
By  amount  appropriated  April  3d,  1862, 
By  amountof  receipts  from  offices  to  September  1st,  1862, 
By  amount  of  cancelled  warrants, 

Making, 
Leaving  to  the  credit  of  the  appropriations, 

I  have  no  report  of  the  amount  of  expenditures  since  the  Ist  Sep- 
tember last,  the  date  at  which  Wm.  S.  Morris  was  appointed  agent 
and  charged  with  the  management  of  the  telegraph  lines.  And  I 
have  to  make  a  merely  arbitrary  estimate  for  the  expenditures  on 
account  of  telegraph  lines  from  that  date  to  the  3()th  of  June  next. 

To  cover  the  probable  expenditures  on  existing  lines,  and  for  build- 
ing and  repairing  lines,  I  request  the  appropriation  of  fifty  thousand 
dollars  ($50,000  00.) 

This  amount  will  not  all  be  expended  unless  the  exigencies  of  the 
war  should  require  the  construction  and  use  of  additional  lines  of 
telegraph. 

I  am,  sir,  with  high  respect. 

Your  ob't  serv't, 

JOHN  H.  REAGAN,  P.  M.  General. 
The  President. 


$66,422 

27 

$30,000 

00 

25,000 

00 

30,000 

00 

1,810 

25 

133 

72 

$86,943 

97 

"$20752l~ 

"to 

78 


Post  Office  Department,      ) 
Richmond,  December  12,  1862.  J 

Sir: — In  compliance  witli  an  act,  approved  April  0,  1862,  "rela- 
tive to  the  estimates  of.tlu*  heads  of  the  several  ilepurtments."  1  iiave 
the  honor  to  submit  the  following  estimates  of  the  sums  required  for 
the  compensation  of  the  Postmaster  General,  Chiefs  of  Bureaux, Clerks, 
Messengers  and  laborers,  from  1st  February  to  3Uth  June,  1863,  in- 
clusive. 

For  compensation  of  Postmaster  General,  at  $6,n()()pcr 

annum,  §2,500  00 

For  compensation  of  three  chiefs  of  bureaux,  at  §3,000 

per  annum,  3,750  00 

For  compensation   of  one    chief  clerk,   at  $1,750    per 

annum,  729    17 

For  compensation  of  one    topographer,  at   §1,750  per 

annum,  729   17 

For  compensation  of  four  principal  clerks,  at  $1,500  per 

annum,  2,500  00 

For  compensation  of  one   disbursing   clerk,  at   $1,500 

peij^^nnum,  625  00 

For  coiiiponeation  of  fifty-five  clerks,  at  1.500  per  an- 
num, 34,375  00 

For  compensation  of  one  watchman,  at  $750  per  annum,  312  50 

For  compensation  of  two  messengers  at  §750  per  an- 
num, '  625  00 

For  compensation  of  one  messenger,  at  $600  per  annum,  250  00 

For  compensation  of  three  laborers,  at  $2  25  per  day,  1,012  50 


$47,408  34 


Also,  the  further  sum  of  §7,715  24,  that  being  the  amount  of  ad- 
ditional estimated  compensation  of  the  clerks,  messengers  and  laborers, 
in  this  department,  from  October  13,  1802,  to  January  31,  1863,  un- 
der an  act  approved  October  13,  1802,  '*to  increase  the  pay  of  certain 
officers  and  employees  in  the  Executive  and  Legislative  Departments." 

And  also,  an  appropriation  of  $5,000  will  be  required  for  the  con- 
tingent fund  of  the  department. 

Very  respectfully. 

Your  obedient  servant, 

JOHN  IT.  REAGAN, 

Postmaster  General. 
The  President. 


